The Bombay High Court has held that the customs dept. can’t indefinitely avoid compliance orders passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on the pretext of drawing sample of seized goods.
The bench of Justice M.S. Sonak and Justice Jitendra Jain observed that the consignment was seized on 06 November 2023. Necessary samples were taken and analysed. The insistence upon drawing a sample at this late stage is not warranted in the facts of the present case. In all probabilities, this is nothing but buying some time and avoiding compliance with the Tribunal’s judgment and order dated 01 July 2024.
The Petitioner/assessee complained that despite the Tribunal’s order, the Respondents/department are not releasing the seized consignment on the plea that they intend to appeal the Tribunal’s order dated 01 July 2024.
The Customs Authorities seized the Petitioner’s consignment, which contained penetrating oil, on the grounds that it was adulterated and canalized. The Adjudicating Authority and the First Appellate Authority held against the Petitioner.
The Petitioner, therefore, appealed to the CESTAT vide Customs Appeal No.85316 of 2024. By the judgment and order dated 01 July 2024, this Appeal was allowed, and the orders made by the Adjudicating Authority and the First Appellate Authority were set aside.
The petitioner submitted that unwarranted conditions had been imposed upon the Petitioner only with a view not to implement the Tribunal’s order dated 01 July 2024.
The department contended that the department is in the process of appealing the Tribunal’s order dated 01 July 2024. There is nothing wrong in the conditions imposed upon the Petitioner and no prejudice will occasion the Petitioner should the same be complied with.
The court directed the respondent/department to comply with and consequently release the seized goods within two weeks of the uploading of this order unless, of course, in the meanwhile, the Respondents obtain a stay on the implementation of the Tribunal’s judgment and order dated 01 July 2024.
Case Details
Case Title: Shri Anmol Singh Sethi Versus Union of India and ors.
Case No.: Writ Petition No. 12292 Of 2024
Date: 17 December 2024
Counsel For Petitioner: Brijesh Pathak
Counsel For Respondent: Jitendra B Mishra
