BHAVIK K SHAH Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioner has, in these proceedings under Articled 226 of the Constitution, sought a declaration that the detention of certain goods after the expiry of the statutory period of limitation of six months after its seizure is illegal and unsustainable by virtue of the provisions of Section 110 of the Customs Act, 1962.

(2.) During the course of the hearing, counsel appearing on behalf of the Petitioner has, in view of the judgment of a Division Bench of this Court in Jayant Hansraj Shah v. Union of India, 2008 229 ELT 339 , urged a more restricted submission for relief. In the judgment of the Division Bench it has been held that it is only in a case where no provisional order has been passed for the release of seized goods and if no notice has been issued under Section 124(a) of the Customs Act, 1962 for confiscation of goods would Section 110(2) be attracted and the Department would be bound to release the goods. In the present case, it is an admitted position that by an order dated 24 May 2011, the Commissioner of Central Excise and Customs, Surat I has allowed provisional release of the goods against a bond and a Bank Guarantee of Rs.1,81,69,875/ .

(3.) In that view of the matter, the only submission which has been urged at the hearing is that the condition which has been imposed of furnishing a bank guarantee in the sum of Rs.1.81 crores for the provisional of the goods must be modified in view of the instructions of the Central Board of Excise and Customs. The instructions in the Manual stipulate thus: