Court orders release of imported car following redemption order, emphasizes timely compliance in customs cases.

The court ruled in favor of the petitioner in a case involving the non-release of an imported car despite an order for redemption. The Department's argument of contemplating an appeal was deemed insufficient to justify withholding the vehicle. The court directed the respondent to release the car to the petitioner upon compliance with the redemption order and instructed the Department to promptly inform the petitioner of the duty payable. Failure to obtain interim orders from the Tribunal led to the court's decision emphasizing the importance of timely action and compliance with judicial directives in customs-related matters.

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Issues:
1. Non-release of imported car despite order for redemption.
2. Contemplated appeal by the Department affecting release of the vehicle.

Issue 1: Non-release of imported car despite order for redemption
The petitioner imported a car and faced proceedings for recovery of differential duty, fine, and penalty. The Commissioner of Customs (Appeals) issued order Ext. P3, upholding the car's value at Rs. 10,19,174 and granting an option to redeem the vehicle on payment of a fine of Rs. 2,00,000. The penalty imposed on the appellant was also reduced to Rs. 75,000. Despite this order, the petitioner complained that the vehicle was not being released. The court found the Department's argument that they were contemplating filing an appeal and hence could not release the vehicle unpersuasive. The court held that the Department cannot delay the release of the vehicle while taking time to file an appeal. If they wished to detain the vehicle, they should have obtained appropriate interim orders from the Tribunal, which they failed to do in this case. Consequently, the court directed the respondent to release the vehicle to the petitioner upon compliance with the Ext. P3 order. The respondent was further instructed to inform the petitioner of the duty payable within one week, to be promptly settled by the petitioner.

Issue 2: Contemplated appeal by the Department affecting release of the vehicle
The Department, represented by the Senior Standing Counsel, argued that they were considering filing an appeal against the Ext. P3 order, which could affect the release of the vehicle. The court, however, was not convinced by this argument, emphasizing that the Department cannot delay the release of the vehicle pending the filing of an appeal. The court noted that the Department should have taken steps to obtain interim orders from the Tribunal if they intended to continue detaining the vehicle. As the Department failed to do so, the court disposed of the writ petition with a clear direction for the immediate release of the vehicle to the petitioner upon fulfilling the conditions specified in the Ext. P3 order. This decision highlighted the importance of timely action and compliance with judicial directives in matters concerning the release of goods subject to customs proceedings.

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