Warehousing under Customs law must preserve the no-duty effect; alleged non-compliance should be raised before the issuing High Court.

Section 49 of the Customs Act, 1962 contemplates warehousing of goods without payment of duty, so a direction to warehouse goods cannot be applied in a way that defeats that statutory effect. Where customs authorities are alleged to have acted contrary to an existing High Court direction while adjudication remains pending, the appropriate remedy is to place the alleged non-compliance before that High Court. The application was disposed of on that basis, with the appellant directed to bring the alleged violation to the notice of the High Court.

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Issues: Whether goods directed to be warehoused under Section 49 of the Customs Act, 1962 could be subjected to payment of duty before completion of adjudication proceedings, and whether the grievance arising from the alleged non-compliance of the warehousing direction should be taken to the High Court.

Analysis: Section 49 contemplates warehousing of goods without payment of duty. A direction to warehouse the goods under that provision cannot be implemented in a manner inconsistent with its statutory effect. Where the complaint is that the customs authority has departed from the High Court's direction while adjudication is still pending, the proper course is to place the alleged violation before the High Court that issued the direction.

Outcome: The application was disposed of with the observation that the appellant should bring the alleged violation to the notice of the High Court.

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