2016 (6) TMI 753 - HC - Customs

Court Orders Release of Seized Goods Under Customs Act

The court held that under Section 110(2) of the Customs Act, goods must be released if no notice is issued within six months of seizure. The impugned ... Release of seized goods on expiry of six months where no notice under Section 124(a) is issued - entitlement to return of goods under Section 110(2) of the Customs Act - quashing of administrative detention order - seizure and retention pending investigationRelease of seized goods on expiry of six months where no notice under Section 124(a) is issued - entitlement to return of goods under Section 110(2) of the Customs Act - quashing of administrative detention order - Whether the detained imported goods covered by the bill of entry dated 06.08.2015 must be released because no notice under Section 124(a) of the Customs Act was issued within six months, and whether the impugned letter dated 18.01.2016 should be quashed. - HELD THAT: - The petitioner's goods, imported under the bill of entry dated 06.08.2015, were detained and subjected to 100% examination which found them to accord with the bill of entry declaration. The respondents did not issue any notice under Section 124(a) of the Customs Act within six months of seizure. Section 110(2) mandates that where no notice under Section 124(a) is given within six months, the goods are to be returned to the person from whose possession they were seized. The respondents' ongoing investigation into related agencies does not negate the statutory entitlement arising from the absence of the prescribed notice within the six-month period. Consequently, the impugned administrative letter dated 18.01.2016 that sustained detention is inconsistent with the statutory mandate and must be set aside, and the goods must be released within a specified short period. [Paras 3, 5, 6]Impugned letter dated 18.01.2016 set aside and the 1st respondent directed to release the goods covered by the bill of entry dated 06.08.2015 within two weeks.Final Conclusion: Writ petition allowed; detention order set aside and goods ordered released within two weeks; no costs. Issues:Release of detained goods under Customs Act, 1962Analysis:The petitioner, a regular importer of heavy melting steel scrap, imported goods via bill of entry dated 06.08.2015, which were detained on suspicion of smuggling hazardous items. Despite 100% examination confirming compliance with the declaration, the goods were not released by the respondents, leading to the filing of a Writ Petition seeking release of the goods.The petitioner argued that under Section 110(2) of the Customs Act, if no notice is given regarding the seizure within six months, the goods must be returned to the person from whom they were seized. As the 1st respondent did not issue any notice under Section 124(a) of the Customs Act, the petitioner was entitled to the release of the goods as per Section 110(2).In response, the respondents claimed discrepancies in the cargo, stating the actual weight was significantly lower than declared, and unauthorized items were found. An investigation was initiated into the Inspection Agency and steamer agent's roles in the matter, with directions for expeditious proceedings.The judgment held that as per Section 110(2) of the Customs Act, in the absence of a notice under Section 124(a) within six months of seizure, the goods must be released. Consequently, the impugned order of 18.01.2016 was set aside, and the 1st respondent was directed to release the goods within two weeks from the date of the order.In conclusion, the Writ Petition was disposed of with no costs, emphasizing the petitioner's entitlement to the release of goods under the Customs Act provisions.