TaxTMI 
TaxTMI 
2018 (9) TMI 328
X X X X Extracts X X X X
X X X X Extracts X X X X
....tional, Bangalore, the container was deposited with the petitioner for safe custody. Thereafter, a show cause notice was issued to the said M/s.Omkar International, Bangalore and an Order in Original No.328/2015, dated 31.03.2015, was passed confiscating the seized red sanders. Pre-trial proceedings under Section 110(1-B) of the Customs Act, 1962, were conducted on 22.05.2014 and the samples were drawn and photographs were taken and thereafter, the container was sealed with One Time Seal No.12- 759287 in the presence of the learned Additional Chief Judicial Magistrate, Madurai and kept under the care and custody of the petitioner, Container Freight Station. 3. On 28.09.2017, the Directorate of Revenue Intelligence identified the red sander....
X X X X Extracts X X X X
X X X X Extracts X X X X
....was remitted to this Court for disposal of vacate stay petition as mentioned in the opening paragraph. 6. The learned Counsel for the petitioner would submit that as per Regulation 11(2) of the Handling of Cargo in Customs Area Regulations, 2009, the Principal Commissioner of Customs/Commissioner of Customs, as the case may be, may in appropriate cases, where immediate action is necessary, suspend the approval granted to the Customs Cargo Service Provider. 7. According to him, this is not an appropriate case for imposing immediate suspension. The Container Freight Station is certified as a best station for the past two consecutive years. More than 500 employees are employed. Insofar as the illegal removal of red sanders is concerned, he h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pensated, because it affects the economy of the country and if any lenient view is taken on this issue, it will set a bad precedent and therefore, the stay granted in respect of the suspension order shall be vacated. 11. He also relied upon the very same judgment in Chandra CFS & Terminal Operators P. Ltd., v. C.C., Chennai-VIII reported in 2015 (326) E.L.T. 122 (Mad.) and submitted that there are certain duties and responsibilities for the custodian of the goods. When there is a violation of those duties and responsibilities, and prima facie, if it makes out a case for suspension, the penal action will be taken later. The continuous operation of the Container Freight Station will prejudice the public interest. 12. I have considered the r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2018), almost four years had elapsed. 16. It is not clear as to when the goods confiscated were removed illegally within these four years. Unless and until the real culprit is caught, it will not come to light as to who are all involved in this criminal offence and as to whether the petitioner has any role in such illegality. There can be a suspicion, till such time, against the Container Freight Station also. 17. In the absence of prima facie materials to indicate that the petitioner is actively involved in the illegal removal of the seized goods in connivance with the staff or others, or hoodwinking the Customs officials, they shall be construed to be innocent. The impugned order does not disclose as to how the continuance of petitioner....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncipal Commissioner of Customs or Commissioner of Customs, as the case may be may, subject to the provisions of these regulations, suspend or revoke the approval granted to the Customs Cargo Service provider subject to the observance of procedure prescribed under regulation 12 and also order for forfeiture of security, if any, for failure to comply with any of the provisions of the Act and the rules, regulations, notifications and orders made thereunder; (2) Notwithstanding anything contained in sub-regulation (1), the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, may in appropriate cases where immediate action is necessary, suspend the approval granted to a Customs Cargo Service provider where an enqu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....moved is worth about Rs. 6.79 Crores and that it is the property of our Nation. Hence, the matter cannot be treated very lightly and suitable protective and preventive measures shall be taken. The petitioner had failed to ensure safety and security and was negligent on his part. In such circumstances, the interest of justice will be served and balance of convenience is achieved by imposing stringent conditions, which may, if the petitioner is indicted in future, compensate the fiscal loss caused to the Government, independent of the punishment to be imposed on the culprits for the crime. 22. Even though the learned Counsel for the petitioner would submit that the market value of the red sanders as on today, would be around Rs. 1.7 Crores a....