Court orders release of seized tug "Century Star-I" upon petitioner's deposit of Rs. 75,00,000 redemption fine.

The court directed the release of the seized tug "Century Star-I" upon the petitioner depositing a redemption fine of Rs. 75,00,000 with the Commissioner of Customs within 24 hours. This order was made without prejudice to the ongoing appeal before the Customs Tribunal, with a provision for the refund of the redemption fine if the petitioner succeeds in the appeal. The court emphasized that its decision did not involve an assessment of the case's merits and refrained from delving into the substantive issues, disposing of the writ petition at the admission stage.

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Issues:
1. Release of seized tug "Century Star-I" by customs authorities.
2. Appeal pending before Customs, Excise and Service Tax Appellate Tribunal.
3. Redemption fine for release of the tug.

Release of Seized Tug:
The petitioner, claiming ownership of the tug "Century Star-I," filed a writ petition seeking direction for its release by customs authorities under the Customs Act, 1962. The tug was seized on 22nd June, 2009, and the petitioner, due to incurring demurrage charges, requested expedited adjudication without a show cause notice. Subsequently, an order of confiscation was issued on 24th June, 2009. The petitioner's appeal before the Customs Tribunal could not proceed due to the unavailability of a second member, leading to the tug remaining idle at sea and deteriorating. The court, considering these circumstances, directed the release of the tug upon the petitioner depositing a redemption fine of Rs. 75,00,000 with the Commissioner of Customs within 24 hours.

Appeal Pending Before Tribunal:
The court's order for the release of the tug was made without prejudice to the ongoing appeal before the Customs Tribunal. If the petitioner succeeds in the appeal, the customs authorities are mandated to refund the redemption fine within a month of the Tribunal's order. Importantly, the court clarified that its decision to release the tug did not involve an assessment of the case's merits, emphasizing that it had not delved into the substantive issues of the matter.

Redemption Fine for Release:
The court's directive for the release of the tug was contingent upon the petitioner depositing a redemption fine of Rs. 75,00,000 with the Commissioner of Customs. This redemption fine was set as a condition for the immediate release of the tug within 24 hours of the deposit being made. The court ensured that this order did not prejudice the rights and contentions of the parties involved, maintaining that it was subject to the outcome of the pending appeal before the Customs Tribunal. Additionally, the court clarified that it refrained from examining the case's merits, as the writ petition was disposed of at the admission stage without requiring responses from the respondents or delving into the allegations made in the petition.

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