J K Traders vs. The Commissioner Of Customs (Preventive)
Held
The High Court directed the competent authority to examine whether any seized articles were locally procured and, if so, release them within six weeks, as Section 111 of the Customs Act applies only to imported goods. However, the Court declined to interfere with the conditions for provisional release due to factual disputes and the availability of an alternate appellate remedy under Section 128 of the Customs Act, preserving the petitioner's right to appeal.
Facts
The petitioner, a trader, challenged a restraint order and seizure of goods under Section 110 of the Customs Act, 1962, claiming some seized items were locally procured and not liable for confiscation. Despite paying Rs. 78 lakhs towards differential duty, the petitioner was required to furnish a bond for the full value of goods and a bank guarantee of Rs. 50 lakhs for provisional release, which they contested as unjustified.
Key Issues
Whether goods procured locally can be seized under Section 110 of the Customs Act, 1962, and whether the conditions for provisional release of seized goods, including a bank guarantee, were justified given a prior payment of differential duty.
Sections Cited
Section 110, Section 110A, Section 111, Section 128
AI-generated summary — verify with the full judgment below
W.P.(C)No.1382 of 2023 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI THURSDAY, THE 13TH DAY OF APRIL 2023 / 23RD CHAITHRA, 1945 WP(C) NO. 1382 OF 2023 PETITIONER: J K TRADERS, X/662, PALLIKAVALA, MUDICKAL PO, PERUMBAVOOR, ERNAKULAM REPRESENTED BY ITS PROPRIETOR MR. JAFAR KHAN K M, PIN - 683547 BY ADVS. SRI JAZIL DEV FERDINANTO SRI JOSE JACOB SRI M.RISHIKESH SHENOY RESPONDENTS: 1 THE COMMISSIONER OF CUSTOMS (PREVENTIVE) OFFICE OF THE COMMISSIONER OF CUSTOMS (PREVENTIVE) 5TH FLOOR, CATHOLIC CENTER, BROADWAY, COCHIN, PIN – 682 031 2 THE ASSISTANT COMMISSIONER OF CUSTOMS (SIIB) OFFICE OF THE COMMISSIONER OF CUSTOMS (PREVENTIVE) 5TH FLOOR, CATHOLIC CENTER, BROADWAY, COCHIN, PIN - 682031 3 THE SUPERINTENDENT OF CUSTOMS OFFICE OF THE COMMISSIONER OF CUSTOMS (PREVENTIVE) 5TH FLOOR, CATHOLIC CENTER, BROADWAY, COCHIN,
The judgment continues below.
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