1995 (2) TMI 222 - AT - Customs

Tribunal Orders Department to Preserve YKK Zippers Pending High Court Decision

The Tribunal ordered the Department not to dispose of the goods, specifically YKK zip fasteners, pending the disposal of the reference application by the ... Interim stay - status quo - preservation of seized goods - non-disposal pending adjudication - claim to confiscated goodsInterim stay - status quo - non-disposal pending adjudication - preservation of seized goods - Direction to the Department to refrain from disposing of the confiscated goods pending disposal of the reference application before the High Court. - HELD THAT: - The Tribunal revived the earlier stay petition pursuant to the High Court's direction and considered whether the Department should be restrained from disposing of the goods which are the subject of a pending Reference application in the High Court. The High Court had earlier admitted the writ and granted an interim stay which continued until the writ was disposed of and further directed that status quo pursuant to its interim orders continue until the Tribunal passed final orders on the stay petition. The goods, of foreign origin, remain in custody and have not been sold; they are not perishable. The Tribunal held that if the goods were disposed of while the Reference is pending, the petitioner, if successful in the High Court, would suffer loss with no meaningful redress. Balancing these facts and the continuance of the High Court's interim orders, the Tribunal concluded it is just and proper to direct the Department not to dispose of the goods until the High Court disposes of the Reference application.The Department is directed not to dispose of the goods pending disposal of the Reference application by the High Court.Final Conclusion: The Tribunal revived the stay petition and directed the Department to preserve the confiscated goods and not to dispose of them until the High Court disposes of the pending Reference application, in order to maintain status quo and prevent irreparable loss to the petitioner. Issues: Application for stay of order of the Tribunal dated 2-4-1986 dismissing the appeal, direction to Department not to dispose of goods pending disposal of reference application by High Court.The judgment pertains to an application seeking a stay of the order of the Tribunal dated 2-4-1986 dismissing the appeal of the petitioner. The petitioner had initially filed a reference application against the Tribunal's order, which was also dismissed. Subsequently, the petitioner moved the High Court of Madras, which admitted the reference application and granted a stay for eight weeks. The petitioner sought direction for the stay of the order relating to the absolute confiscation of goods, specifically YKK zip fasteners. The petitioner argued that if the reference application is allowed by the High Court, they would not be able to retrieve the confiscated goods unless the order of confiscation is stayed. The Department contended that although the goods were not perishable, they would deteriorate over time, and the petitioner could claim the sale proceeds. The Tribunal considered the submissions and noted that the High Court had directed the revival of the stay petition. Given that the goods were of foreign origin and still available with the Department, it was deemed just and proper to direct the Department not to dispose of the goods until the reference application is disposed of by the High Court to prevent any loss or injury to the petitioner. The Tribunal emphasized that the goods had been preserved by the Department for more than seven years, and with the reference application pending, it was crucial to maintain the status quo to protect the petitioner's interests. Therefore, the Tribunal ordered the Department not to dispose of the goods pending the disposal of the reference application by the High Court.