TaxTMI 
TaxTMI 
2023 (6) TMI 21
X X X X Extracts X X X X
X X X X Extracts X X X X
....r the purpose of local sale, they import machinery and spare parts from China with the assistance of a local agent, while face veneer is imported directly by the petitioner. The 3rd respondent conducted an enquiry in the premises of the petitioner and thereafter issued Ext.P7 restraint order invoking Section 110 of the Customs Act, 1962 (hereinafter referred to as the Act). The goods lying in the warehouse of the petitioner which included face veneer, conveyor belt, plywood, imported machinery, and spare parts were seized. According to the petitioner, the seized goods included conveyor belt and plywood which were procured locally. It is contended that Section 110 of the Act can be invoked only in case of imported goods which are liable f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Gujarat v Mohanlal Jitamalji Porwal & Anr. [AIR 1987 SC 1321], wherein it was held that the Court would not sit in appeal on the question whether the articles were seized on a reasonable belief that the goods were smuggled goods. The judgment of the Hon'ble Supreme Court in Pukhraj v. D.R.Kohli, Collector of Central Excise & Anr. [AIR 1962 SC 1559] is also to the same effect. The decision of the Madras High Court in ALM Enterprises v. The Commissioner of Customs (WPC No. 30789 of 2015) and the judgment of the Madhya Pradesh High Court in Rajesh Garg v. Assistant Commissioner of Customs (WP No. 16376 of 2020) and the decision of the Rajasthan High Court in Giriraj Spintex Private Limited v. Director General of Revenue Intelligence & Ors.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... pending the order of the adjudicating authority, be released to the owner on taking a bond from him in the proper form with such security and conditions as the Commissioner of Customs may require. 111. Confiscation of improperly imported goods, etc. -The following goods brought from a place outside India shall be liable to confiscation:- xxxxxxxxx xxxxxxxxx xxxxxxxxx (m) any goods which do not correspond in respect of value or in any other particular with the entry made under this Act or in the case of baggage with the declaration made under section 77 in respect thereof, or in the case of goods under transhipment, with the declaration for transhipment referred to in the proviso to sub-section (1) of section 54. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... authority. Whether the goods are liable for confiscation and whether the seizure is proper are all matters which are to be decided in appropriate proceedings under the Statute. The Statute itself provides for provisional release of seized goods on taking a bond from the owner in the proper form with such security and conditions as the Commissioner of Customs may require. It is invoking the said power that Ext.P11 has been issued to the petitioner calling upon them to execute a bond on the value of the seized goods and the bank guarantee for Rs. 50 lakhs. It is apparent that the bank guarantee is directed to be furnished as security, which the Officer is entitled to require under Section 110A. The only grievance of the petitioner is that th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dent that there is a factual dispute regarding the payment of Rs. 78 lakhs and it is this demand which is stated as a reason for reconsidering the direction to furnish bank guarantee. In the light of the specific appellate remedy available to the petitioner and the factual dispute which would go to the root of the order which is impugned, it is not proper for this Court to consider the said issue on merits in a proceeding under Article 226 of the Constitution. The law laid down in the judgments referred to above are also to the said effect. In the above circumstances, the reliefs as prayed for in the writ petition cannot be granted. 7. The writ petition is hence disposed of directing the competent authority to examine whether any of the ....