Court Directs Payment for Improperly Sold Seized Goods; Awards Costs and Quashes Non-Payment Orders.

The petitioner contested the non-payment of the seizure value for goods seized under Section 110 of the Customs Act. The Dept. confiscated two items, allowing redemption of one, but sold both. The Court held the sale improper, directing the Dept. to pay Rs. 1,38,233, the seizure value, with potential interest. Orders refusing payment were quashed, and costs were awarded. The writ petition was disposed of with parties receiving signed copies.

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Issues involved: Realization of seizure value of goods under Section 110 of the Customs Act.

Summary:
The petitioner sought realization of the seizure value of goods ceased under Section 110 of the Customs Act. The department confiscated two items but allowed redemption of one upon payment of penalty. Despite payment, the goods were not returned as they were sold by the department. The petitioner appealed against the refusal to pay the seizure value, which was denied. The main issue was whether the seizure value or the value fetched by sale should be paid to the petitioner.

The Court noted that the goods were seized and valued at the time of seizure, which was higher than the sale value. The Customs Act provides a procedure for the sale of goods not confiscated. The Court held that until the proceedings concluded, the goods should have been held by the department as a trustee for return to the petitioner. The department failed to explain the sale procedure, rendering the sale of certain items improper and void. The petitioner was entitled to the declared seizure value of the goods.

The Court directed the department to pay the petitioner the sum of Rs. 1,38,233, being the seizure value of the goods. All orders refusing to pay the seizure value were set aside and quashed. If payment was not made within two months, the petitioner would be entitled to interest at 6% per annum. The respondents were also ordered to pay costs assessed at 200 gms. The writ petition was disposed of, with parties to receive signed copies after requisition.

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