OM UDYOG Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) This order will dispose of CWP Nos. 5248 and 5254 of 2010 as both the petitions involve identical issue of validity of detention of goods by the custom authorities.

(2.) In CWP No. 5248 of 2010, case of the petitioner is that it imported material in question i.e. Processed Distillate Oil in January-February 2010 and filed Bill of Entry under Section 46 of the Customs Act, 1962 (for short, 'the Act'). The petitioner sought clearance of the goods for home consumption on payment of import duty. The officers of the department physically verified the goods and took samples for the purpose of making assessment of duty under Section 17 of the Act. There was also correspondence between the petitioner and the department. Thereafter, the goods were seized vide Panchnamas Annexures P.6 to P.8, P.10 and P.11 between 12.3.2010 to 19.3.2010.

(3.) The petitioner sought release of goods pointing out that examination of goods had already taken place and there was no justification for seizure of the goods. It was also pointed out that detention of goods was resulting in demurrage charges. Even Deputy Commission, Customs wrote to the Additional Director, DRI vide letter dated 18.3.2010, Annexure P.11 that samples having already been taken, the party was suffering heavy demurrage on account of non clearance of consignment and, therefore, the goods may be released, unless required for examination or re-examination. It was also mentioned that bill of entry had already been assessed provisionally by the proper officer. Still, the goods were not released. Accordingly, this petition was filed in this Court on 22.3.2010 stating that the goods were being illegally detained. Reliance was also placed on instructions Annexure P.12 dated 22.8.2006 to the effect that first examination of goods should take place in 48 hours and assessment should be done within 24 hours thereafter. If it was necessary to detain the goods, the importer must be intimated so that he may shift the goods to a bonded warehouse under Section 49 of the Act. Goods may be provisionally released and decision to release goods should be taken within five days after the presentation of bill of entry. Exceptions were of prohibited goods or fraudulent practices.