2022 (1) TMI 474 - HC - Customs

Court permits auction of confiscated idol, proceeds for duty/penalty. Petitioner surrenders, Revenue ceases action.

The Court allowed the Revenue to auction the idol/statue confiscated from the petitioner to recover duty or penalty, with the proceeds to be used for the ... Confiscation - antiquity designation - Disposal Manual 2019 - handing over to Archaeological Survey of India - abatement of proceedings - writ of certiorari under Article 226Disposal Manual 2019 - handing over to Archaeological Survey of India - confiscation - Whether the Revenue could decline to auction the confiscated idol and instead hand it over to the Archaeological Survey of India for disposal under the Disposal Manual 2019. - HELD THAT: - The Court recorded that the department, pursuant to the Disposal Manual 2019 and following consultation with the Superintendent, Archaeological Survey of India, took the view that confiscated antiquities which become ripe for disposal should be handed over to the Archaeological Survey of India free of charge, which would be responsible for disposal. The Revenue applied to modify the earlier court direction to auction the idol on that basis and undertook to hand the idol to the Archaeological Survey of India in accordance with Point No.17.9 of the Disposal Manual 2019. The petitioner expressly consented to that course and disavowed any objection to the idol being handed over to the Archaeological Survey of India free of charge for disposal under the Disposal Manual. Having recorded both the departmental position and the petitioner's consent, the Court authorised the Revenue to hand over the idol to the Archaeological Survey of India for disposal as per the Disposal Manual 2019 instead of proceeding with auction. [Paras 6, 8, 9]The Court permitted the Revenue to hand over the confiscated idol to the Archaeological Survey of India for disposal in accordance with Point No.17.9 of the Disposal Manual 2019.Abatement of proceedings - writ of certiorari under Article 226 - Whether the pending proceedings against the petitioner should be continued or abated in view of the petitioner's relinquishment of claim and the agreed handover to the Archaeological Survey of India. - HELD THAT: - The petitioner stipulated that he would neither claim ownership of the idol/statue nor seek its release, and the Revenue agreed to hand the idol to the Archaeological Survey of India for disposal. In light of these admissions and the departmental undertaking, the Court directed that the Revenue shall not precipitate the pending proceedings nor initiate fresh proceedings in furtherance of the same, and recorded that the proceedings described in the writ petition's prayer clause (a) stand abated. The Court thereupon made the Rule absolute and disposed of the petition and interim application on these terms. [Paras 9, 10, 11]Proceedings against the petitioner stood abated; the Court made the Rule absolute and disposed of the petition and interim application on the basis that the petitioner would not claim ownership and the Revenue would hand over the idol to the Archaeological Survey of India.Final Conclusion: The Court authorised the Revenue to hand over the confiscated idol to the Archaeological Survey of India for disposal under Point No.17.9 of the Disposal Manual 2019, accepted the petitioner's relinquishment of any claim or right to the idol, and directed that the pending proceedings against the petitioner stand abated; the Rule was made absolute and the petition and interim application were disposed of accordingly. Issues:1. Petition seeking a writ of certiorari and a declaration regarding confiscated metal idol.2. Respondents' interim application for modification of the order.3. Disposal of the idol/statue as per provisions of Disposal Manual 2019.4. Agreement between parties regarding handing over the idol/statue to Archaeological Survey of India.5. Decision of the Court regarding ownership and pending proceedings.Analysis:1. The petitioner filed a petition under Article 226 seeking a writ of certiorari and a declaration regarding the confiscation of a metal idol imported from Bangkok. The petitioner challenged the orders passed by the Commissioner of Customs (Appeals) and the Principal Commissioner, seeking to declare the idol as a non-antique and quash the impugned orders.2. The respondents filed an interim application seeking modification of the order to allow the department to hand over the idol/statue to the Archaeological Survey of India or National Customs Museum as per the provisions of Disposal Manual 2019. The Court noted discrepancies in the valuation of the idol/statue by the Customs authorities and the petitioner's purchase price, leading to duty and penalty imposition.3. The Court, in an interim order, recorded the petitioner's willingness to donate the idol/statue to the Customs Department for auction to recover the duty or penalty. The Court allowed the Revenue to auction the idol/statue and complete formalities within three months, with subsequent clarification regarding the purpose of the auction.4. The Revenue contended that, as per the Antiquities and Art Treasures Act, the idol could be sold to Indian nationals and should not be exported. Referring to the Disposal Manual 2019, the Revenue intended to hand over the idol/statue to the Archaeological Survey of India for disposal as per Point No.17.9 of the Manual.5. Both parties agreed to hand over the idol/statue to the Archaeological Survey of India as per the Disposal Manual 2019. The petitioner relinquished ownership claims, and the Revenue agreed not to pursue pending or initiate fresh proceedings against the petitioner. Consequently, the Court directed the Revenue to halt the proceedings described in the petition, which stood abated, thus disposing of the writ petition and interim application accordingly.