Court Stays Seizure of Goods for Mega Power Plant Project

The court granted a stay in favor of the petitioner, protecting the warehoused goods from seizure by respondent authorities. The petitioner, establishing a Mega Power Plant, imported exempted capital goods under a government notification, with the exemption extended to 60 months. The court found a prima facie case in favor of the petitioner, noting the irreparable loss that would occur without the stay. The goods in the private warehouse were exempted from customs duty until January 15, 2017, and the respondents were directed not to seize the goods until the next hearing scheduled for March 10, 2015.

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Issues:
1. Validity of exemption from customs duty on imported capital goods for a Mega Power Plant.
2. Extension of time limit for retaining goods in warehouse under Section 61 of the Customs Act, 1962.
3. Application for stay against coercive action by respondent authorities for seizure of warehoused goods.

Analysis:
1. The petitioner argued that they are establishing a Mega Power Plant and have imported exempted capital goods under a government notification. The exemption was initially for 36 months but extended to 60 months. The goods were kept in a private warehouse under Section 58 of the Customs Act since July 2011. The petitioner applied for extension beyond one year under Section 61(1)(b) read with proviso (i)(B) of the Act. The last application was dated 22nd October 2013. The petitioner sought stay against coercive action for seizure of goods at the warehouse.

2. The court considered the Central Government notification of March 17, 2012, the validity of exemption until January 15, 2017, and the provisions of the Customs Act, 1962 including Sections 58 and 61. The court found a prima facie case in favor of the petitioner. The balance of convenience favored the petitioner, noting that irreparable loss would occur without the stay. The goods in the private warehouse were exempted from customs duty until January 15, 2017. The court directed the respondents not to seize the warehoused goods until the next hearing.

3. The court granted the stay as prayed for in the Interlocutory Application, ensuring that the warehoused goods at Tori Warehouse in Jharkhand were protected from seizure. Both the Interlocutory Application and the writ petition were adjourned to March 10, 2015, for further proceedings.

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