SHILPI CRAFTS - PETITIONER Vs. UNION OF INDIA - RESPONDENT

JUDGEMENT

(1.) The present writ petition filed under Articles 226 and 227 of the Constitution of India (which was amended subsequently) prays for issuance of a writ in the nature of mandamus or certiorari for quashing of seizure/provisional release memos dated 1-7-2011, 12-9-2011, 17-10-2011, 18-11-2011, 2-12-2011, 17-1-2012, 23-2-2012, 27-2-2012, 12-3-2012 and 17-3-2012 and directing the respondents to release the imported goods comprising of flat bed/circular knitting machines and declaring the action of the respondent authorities for withholding the imported goods being illegal, arbitrary, mala fide and violative of Articles 14 and 19(1)(g) with further alternative relief of fixing the amount of demmurage/detention charges and compensation for delay in releasing the goods or such order or direction which this Court may deem fit in the circumstances of the case.

(2.) The pleaded case of the petitioner is that during the period from July, 2011 to December, 2011, it had imported 6 consignments of old and used flat bed/circular knitting machines with standard accessories for which there are entries at the port of Inland Container Deport-Punjab State Warehouse (ICD-PSWC), Ludhiana. Upon arrival of the goods, the petitioner filed the bills of entries No. 3920965, dated 28-6-2011, 3920963, dated 28-6-2011, 4133390, dated 21-7-2011, 4538168, dated 3-9-2011, 4720342, dated 23-9-2011 and 4721810, dated 23-9-2011 for clearance of the said consignments under Customs Tariff Heading 8447 20 90 and Central Excise Tariff Heading 8447 20 90 declaring the value and other particulars as per the information supplied on the import documents supplied by the foreign supplier.

(3.) On 1-7-2011, the officers of the Directorate of Revenue Intelligence, Regional Unit, Ludhiana raided the office, residential and godown premises of the petitioner and nothing incriminating was found against the petitioner who was out of the country. The officers sealed the residential premises of the petitioner and detained 88 machines lying in the 3 godown premises which were later seized by the panchnama dated 1-7-2011. In addition to it, respondent No. 3 had also seized 3 old and used machines along with electric panel and 2 pieces of electric plates. The petitioner was informed regarding the search by his staff and after returning back to India, the petitioner requested for seal cutting of the residential premises and examination of the machines detained at the port of ICD, Ludhiana. The process of seal cutting of the residential premises was done on 11-7-2011 and nothing incriminating was found against the petitioner and the IEC of the petitioner was put under alert by the officers of Directorate of Revenue Intelligence, Ludhiana and all the machines imported from 28-6-2011 to 23-9-2011 were detained vide panchnama of the said date. The machines imported by the importer vide different bills of entries were subject to examination by the officers of DRI and it was found that the same were declared by the petitioner and the Department took the opinion of Chartered Engineer, Varun Chandok and Rajesh Jhon who submitted their reports to the DRI. Out of the total 26 machines imported by the petitioner, 3 machines along with accessories had been placed under seizure and out of the total 88 detained machines, 10 machines were released vide letter dated 2-12-2011 and 55 machines had been placed under seizure vide letter dated 17-1-2012.