Court criticizes onerous conditions for seized goods release, intervenes under Article 226, provides relief

M/s Kuber Casting (P) Ltd. Versus Union of India And Another

M/s Kuber Casting (P) Ltd. Versus Union of India And Another - 2013 (297) E.L.T. 4 (P & H) Issues involved:
Import and trading of goods, seizure of goods, provisional release conditions, legality of actions, judicial review of conditions imposed, statutory remedy availability, onerous conditions, financial burden on petitioner, autocratic exercise of powers.

Import and trading of goods:
The petitioners, engaged in importing and trading goods, faced seizure of goods for alleged misdeclaration. The petitioners imported heavy milling scrap and re-rollable scrap, which were seized by the authorities due to alleged misdeclaration in description and weight to evade custom duty.

Seizure of goods:
The respondents alleged misdeclaration by the petitioners regarding the goods' description and weight at the time of filing Import General Manifests (IGMs). The petitioners requested provisional release of the seized goods, which was granted by the authorities with certain conditions deemed onerous by the petitioners.

Provisional release conditions:
The authorities imposed conditions for provisional release, including furnishing a bond for the full value of seized goods, providing a bank guarantee/cash deposit, and payment of differential duty. The petitioners contested the onerous nature of these conditions and approached the court for relief.

Legality of actions:
The petitioners challenged the legality of the seizure of goods and the conditions imposed for provisional release. The respondents defended their actions, asserting the validity of the seizure and the necessity of the conditions imposed for provisional release.

Judicial review of conditions imposed:
The court examined the provisions of the Customs Act, particularly Section 110-A, which allows for provisional release of seized goods pending adjudication. The court evaluated whether the conditions imposed on the petitioners were reasonable or unduly burdensome, considering the objective of securing revenue interests.

Statutory remedy availability:
The court considered the availability of statutory remedies for the petitioners against the conditions imposed. The respondents failed to provide a convincing argument regarding the reasonableness of the conditions, leading the court to intervene under Article 226 of the Constitution to address the petitioner's lack of remedy.

Onerous conditions and financial burden on petitioner:
The court analyzed the conditions imposed on the petitioners for provisional release, focusing on the requirement of a bank guarantee/cash deposit equal to 25% of the seized goods' value. The court deemed this condition excessively burdensome and not justified when duty had already been paid.

Autocratic exercise of powers:
The court criticized the authorities for their autocratic and despotic exercise of powers in imposing onerous conditions for provisional release. The court set aside the conditions to the extent of requiring a bond equivalent to the seized goods' value and payment of differential duty, allowing the petitioners relief.

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