2025 (5) TMI 2228 - HC - Customs

Release of seized gold jewellery without storage fees, ordered refund from warehousing agency; customs costs waived after regret

The dominant issue was enforcement of a prior HC direction waiving storage charges for release of seized personal gold jewellery. The HC held that the ... Seeking release of the personal gold jewellery - ill treatment meted out to the Petitioner and her family by the Customs Official - Waiver of storage charges - HELD THAT:- Petitioner was unfortunately made to wait for a considerable time due to the fact that Assistant Commissioner, Customs, had been summoned by the senior officials for a meeting which continued for a long time. Assistant Commissioner, Customs has expressed regret. In view thereof, the costs imposed on the Customs Department is waived of. Insofar as, waiver of storage charges is concerned, the Court had clearly directed vide order dated 1st April, 2025 that no storage charges would be collected from the Petitioner. However, despite the said direction the Central Warehousing Corporation (“CWC”) has charged. Assistant Manager, CWC, who is present in Court, submits that she would take up the matter urgently and ensure that the amount is refunded to the Petitioner within one week. The said statement is accepted. It is made clear that if the refund is not given, then costs would be liable to be imposed on CWC, as the collection of storage charges was contrary to the order passed by this Court. Issues: (i) Whether the alleged ill-treatment and delay by a customs official warranted any further action or costs against the Customs Department; (ii) Whether storage charges collected contrary to a prior court direction must be refunded.Issue (i): Whether the ill-treatment and delay in releasing personal jewellery, and failure to comply promptly with earlier directions, warranted further action or costs against the Customs Department.Analysis: A senior customs official appeared and expressed regret for the delay caused by his unavailability due to a meeting called by senior officials; the earlier direction had required release of personal jewellery within two days and payment of costs. In light of the explanation and the official's attendance and expression of regret, the imposed costs were reconsidered.Conclusion: Costs previously imposed on the Customs Department are waived in favour of the Petitioner.Issue (ii): Whether storage charges collected by the Central Warehousing Corporation despite a court direction prohibiting such charges must be refunded to the Petitioner.Analysis: The prior order directed that no storage charges be collected. The Central Warehousing Corporation acknowledged collection of the amount and undertook in court to refund the sum within one week. The refund undertaking was accepted and a consequence for non-compliance was indicated.Conclusion: The Central Warehousing Corporation is directed to refund the storage charges collected to the Petitioner within one week; failure to refund would attract costs.Final Conclusion: The petition is disposed of by waiving the costs against the Customs Department and directing restitution of storage charges by the Central Warehousing Corporation; pending applications, if any, are disposed of.Ratio Decidendi: Where an administrative body has collected charges contrary to a court direction, restitution must be ordered and compliance with judicial directions enforced, subject to consequences for non-compliance.