CC Vs. PIDILITE INDUSTRIES LTD.

JUDGEMENT

(1.) THIS appeal is filed by the revenue against order in appeal dated 28th February 2006 that set aside the order in original of confiscation of the goods imported by the respondent and also directed the authorities to refund the entire amount of the value of the goods seized and not the amount which was realised by the revenue during the auction.

(2.) THE relevant fact that arise for consideration are the respondent imported consignment of mobile sets. The said consignment was detained and seized by the authorities in October 2000, subsequent to investigation. A Show cause notice was issued to the respondent proposing to confiscate the seized goods and imposing penalty. The adjudicating authority in his order absolutely confiscated the seized goods and imposed penalty on the appellants. Appellant succeeded before the Commissioner (Appeal) against said order. During the pendency of the appeal before the Commissioner (Appeals), the lower authorities auctioned the consignment and sold the same. The amount received by auction was Rs. 1,04,481/ - (Rupees One lakh Four Thousand Four Hundred and Eighty One only). The respondent also made a plea before the learned Commissioner (Appeals) that the consignment having been already auctioned, they should be granted the refund of the value of the goods as ascertained when seized and not the amount which was realised by the revenue. Learned Commissioner (Appeals) allowed the appeal of the appellant and set aside the confiscation and also directed the lower authorities to refund the seizure value of the goods.

(3.) CONSIDERED the submissions made by both sides and perused records. It can be seen from the impugned order that the learned Commissioner has clearly spelt out the law as settled by the higher judicial forums, in this case. The learned Commissioner (Appeals) in his findings has held as under: 11. In view of the above discussion and findings, I am of the considered view that the appellants are entitled to the seizure value of the goods. The adjudicating authority has sanctioned sale proceed Rs. 1,04,481/ -. The seizure value of the goods was Rs. 3,80,000/ -. Therefore, the Deputy Collector, Customs (Prev.), Lucknow is directed to pay the differential amount Rs. 2,75,519.00 within three months from the receipt of this order. Accordingly, the appeal is disposed of by modifying the Order -in -Original No. 01/Consequential Relief/2005 dated 28.01.2005, passed by the Deputy Commissioner (Prev.), Lucknow. I find that the Hon'ble Supreme Court in the case of Northern Plastics Ltd. v. Collector of Customs and Central Excise as reported in paragraph '7' has held as under: