Court Orders Release of Silk Fabrics Import; Department Directed to Release Goods

The Court ordered the immediate release of 16 out of 17 seized consignments of Mulberry Silk Fabrics imported from China, as they were found not confiscable under the Customs Act. The Adjudicating Authority dropped proceedings against the petitioner, confiscating only one carton with no claimant. The Department's review application was rejected, and the Court directed the Department to release the goods without the petitioner needing to make a separate application. The writ application was disposed of with a directive for release within a week, clarifying that allegations were not admitted without affidavits.

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Issues:
1. Seizure of imported goods by Customs Authorities.
2. Show cause notice issued under Section 124 of the Customs Act, 1962.
3. Adjudication proceedings and order passed by the Adjudicating Authority.
4. Review application under Section 129D of the Customs Act, 1962.
5. Release of the seized consignments by the Department.

Analysis:

1. The petitioner imported 17 consignments of Mulberry Silk Fabrics from China, which were seized by Customs Authorities after being brought to Howrah and kept at the Railway Parcel Shed. The consignments were assessed to duty before being seized.

2. A show cause notice was issued under Section 124 of the Customs Act, 1962, to the owner of the unclaimed goods, mentioning the provisions of Sections 111(b) & (d) for confiscation and Section 112 for imposing penalties. The petitioner replied to the notice, and adjudication proceedings commenced.

3. The Adjudicating Authority, after hearing both parties, passed an order dropping the proceedings against the petitioner. The Authority held that the 16 cartons of silk claimed by the petitioner were not confiscable under Section 111(d) of the Customs Act, 1962. However, 1 carton was confiscated as there was no claimant.

4. The Department applied for a review of the Adjudicating Authority's order under Section 129D of the Customs Act, 1962. The Commissioner of Customs upheld the decision of dropping the proceedings against the petitioner, and the review application was rejected.

5. The Court directed the Department to release the consignments in question immediately, emphasizing that the Department's obligation to release the goods arises after being unsuccessful in adjudication, appeal, or review application. The petitioner was not required to make a separate application for release.

6. The writ application was disposed of, with a directive for the immediate release of the consignments within one week. The Court clarified that the allegations in the writ petition were not deemed admitted due to affidavits not being called for.

7. The Court ordered the supply of an urgent certified copy of the judgment to the parties upon compliance with all formalities.

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