OLYMPIC WOOLLEN MILLS Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) THIS petition filed under Article 226 of the Constitution challenges orders dated 22 -1 -2009, 20 -2 -2009 and 9 -6 -2009 (P -2, P -6 & P -7), passed by the Directorate of Revenue Intelligence, Ludhiana, detaining/seizing 5400 Kgs. yarn and cash of Rs. 4.2 lacs of the Petitioner. A further prayer has also been made for directing the Additional Director, Directorate of Revenue Intelligence -Respondent No. 2 to defreeze the bank account and D -Mat account of the Petitioner; and allow it to withdraw funds therefrom.

(2.) THE case of the Petitioner is that it used to import various types of yarn from China and sell the same as such or after converting the same into fabrics. It is claimed that the Petitioner has neat and clean track record of importing goods and that during the last five years the Custom Officers never raised any objection at the time of clearance of their goods. It has been averred that it has always complied with the requirements of Sections 17, 46 and 47 of the Customs Act, 1962 (for brevity, 'the Act'). These provisions relate to assessment of duty, entry of goods on importation and clearance of goods for home consumption.

(3.) ON 20 -2 -2009, the revenue -Respondent seized 5400 Kgs. of imported yarn, namely, Nylon Lurex Yarn, which was detained vide Detention Memo, dated 22 -1 -2009 (P -2). The market value of the seized goods was assessed as Rs. 17,90,000/ - (P -6). However, option was given to the Petitioner to apply for provisional release of goods. Subsequently, on 9 -6 -2009 the detained amount of Rs. 4.2 lacs was also seized (P -7).