2021 (12) TMI 1404 - HC - Customs

Court grants release of seized Toyota Prado to petitioner, clarifies ownership for payment and registration.

The court allowed the petitioner's request for the release of a Toyota Prado vehicle seized for alleged Customs Act violations. The court treated the ... Provisional release of seized goods - treatment of purchaser as owner for compliance with release conditions - release on compliance with conditions of provisional release order - seizure of vehicle as imported in alleged violation of Customs ActProvisional release of seized goods - release on compliance with conditions of provisional release order - Petitioner entitled to have the seized vehicle released on compliance with the conditions of the provisional release order passed by the competent authority. - HELD THAT: - The Court noted that the additional competent authority had already passed an order dated 26.11.2021 directing provisional release of the vehicle under the Customs Act. In view of that order and the fact that the vehicle was seized from the petitioner's possession, the Court accepted the submission that the petitioner could be treated as the owner for the limited purpose of making payment and complying with the conditions stipulated in the provisional release order. The Court permitted the petitioner to comply with those conditions and directed release of the vehicle upon such compliance to enable the petitioner to effect registration in his name. [Paras 2, 4]Petitioner permitted to comply with the conditions of the provisional release order dated 26.11.2021 and, upon such compliance, the vehicle shall be released to the petitioner to enable registration in his name.Treatment of purchaser as owner for compliance with release conditions - seizure of vehicle as imported in alleged violation of Customs Act - Petitioner to be treated as owner for the specific purpose of satisfying the provisional release conditions despite registration standing in another name. - HELD THAT: - Although the vehicle's registration remained in the name of a third party, the Court observed that the petitioner had purchased the vehicle after verifying documents and that the seizure prevented him from effecting change of registration. Considering the spirit and terms of the provisional release order and the seizure from the petitioner's possession, the Court held that the petitioner can be regarded as the owner solely for complying with the payment and other conditions necessary for provisional release. [Paras 3, 4]For the limited purpose of complying with the provisional release order, the petitioner shall be treated as the owner and may effect release by fulfilling the conditions directed in the order dated 26.11.2021.Final Conclusion: Writ petition disposed of by directing that the petitioner may comply with the conditions of the provisional release order dated 26.11.2021 and, on such compliance, the seized vehicle shall be released to the petitioner to enable registration in his name. Issues:1. Seizure of Toyota Prado vehicle for alleged violation of Customs Act and non-payment of customs duty.2. Petitioner's request for the release of the seized vehicle.3. Ownership of the vehicle and registration particulars.4. Provisional release order under Section 110 A of the Customs Act.Analysis:1. The petitioner sought the release of a Toyota Prado vehicle seized by the 3rd respondent for alleged violations of the Customs Act and non-payment of customs duty. The petitioner had purchased the vehicle from an agent and verified the authenticity of the documents through the vahan portal and original documents provided by the seller. The 3rd respondent alleged that the vehicle was imported under a special benefit scheme for Consulates of foreign countries in India.2. Following the seizure, the petitioner filed an application for provisional release, and the additional 5th respondent passed an order directing the provisional release of the goods under Section 110 A of the Customs Act. The order specified the release of the vehicle to the owner, even though the registration stood in another person's name. The petitioner claimed ownership since the vehicle was seized, preventing a change in registration particulars.3. The court considered the submissions and the provisional release order, concluding that the petitioner could be treated as the owner for the purpose of complying with the conditions directed in the order dated 26.11.2021. Upon compliance, the vehicle would be released to the petitioner to facilitate the registration in his name. This decision was based on Ext.P3 and the seizure of the vehicle from the petitioner's possession.4. In light of the above considerations, the court disposed of the writ petition, allowing the petitioner to proceed with the compliance conditions outlined in the provisional release order. The judgment clarified the ownership status for payment purposes and the subsequent registration of the vehicle in the petitioner's name.