2011 (3) TMI 1417

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....cence Scheme in February, 2011 and filed Bills of Entry declaring the goods to be Heavy Melting Scrap. Duty was accordingly paid but the goods were seized and seizure memos, were prepared on the allegation that higher rate of duty may be payable. According to the petitioner, the seizure was without any justification as the goods cannot be held to be liable to confiscation in any manner. Some material which is said to be part of machinery is also in practicable terms scrap and cannot be classified as re-rollable products or machinery. Further case of the petitioner is that though instructions have been issued by the Central Board of Excise and Customs to the effect that option of provisional release should be ordered to avoid unnecessary det....

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....he goods are scrap. At best, it is a case of mutilation to which the petitioner had no objection. The seizure is illegal and even if there is power to effect the seizure, exercise of such power should be for valid reasons and not arbitrary. Fairness in action is constitutional obligation of an Administrator. There was no bar to order of provisional release being passed instead of waiting for an application. Effecting seizure puts heavy financial burden in terms of storage charges and thus, exercise of power of detention of goods to prevent loss of revenue is coupled with duty to pass a provisional order, wherever a case is made out, so that unnecessary harassment and loss to the assessee is avoided. According to learned counsel for the peti....