Writ Petitioner Concealing CESTAT’s Order Of Confiscation: Madhya Pradesh High Court Imposes Rs. 25K Cost

The Madhya Pradesh High Court has imposed a cost of Rs. 25000 on the writ petitioner seeking provisional release of goods for suppressing the fact of CESTAT’s final order of confiscation, which was well within his knowledge.

The bench of Justice Vivek Rusia and Justice Pranay Verma has observed that the Tribunal has set aside the order rejecting the application for provisional release of the currency. The order of the tribunal has attained finality in respect of provisional release, but before the goods or currency could be released, the final order of confiscation had been passed; therefore, the order for provisional release cannot be complied with.

The importer imported one shipment of nutritional Supplements and paid the customs duty. Before the goods could be cleared, they were put to examination by the Directorate of Revenue Intelligence (DRI), Indore, and were detained under the Panchnama, followed by a seizure memo.

The importer applied for provisional release of the seized goods. In the course of the investigation, the residential premises of the petitioner were also searched, during which an Indian Currency of Rs. 82,67,900 and USD 5000/- were found and retained by the Officers of DRI (IZU).

The petitioner filed an application for the provisional release of seized currency. The department rejected the request of the petitioner, which he challenged by way of a customs Appeal before the CESTAT. The Tribunal has set aside the order.

The petitioner made representations to the Commissioner of Customs for the release of the currency of Rs. 82,67,900 and USD 5000. The reminders were sent by the Registered AD Post. The petitioner sought approval from the Principal Commissioner of Customs (Adjudication) for the release of the currency amount.

The Deputy Commissioner of Customs submitted information to the Commissioner that the Chief Commissioner has accorded concurrence for acceptance of the CESTAT final order.

The petitioner submitted that the order passed by the CESTAT has attained finality as the department has accepted it. Hence, there is no reason not releasing the currency to the petitioner.

The department contended that the petitioner's application for provisional release along with the relevant documents was forwarded on December 23, 2022, to the Principal Commissioner of Customs (Adjudication), Mumbai, to release the said currency in terms of the CESTAT Final Order. The Principal Commissioner of Customs (Adjudication), Mumbai, ordered the absolute confiscation of the currency under the provisions of Section 121 of the Customs Act, 1962. Since the final adjudication has been made, the petitioner's prayer for provisional release cannot be considered now. The petitioner is seeking an alternate remedy to approach the CESTAT against the final order dated January 11, 2023.

The court noted that the subordinate authorities have not denied compliance with the order passed by the Tribunal for provisional release, but before the goods could be released, the final order of confiscation had been passed, which is an appealable order; therefore, the order passed by the Tribunal cannot be complied with.

Case Title: Hitesh Nagwani Versus Commissioner Of Customs

Case No.: Writ Petition No. 10267 Of 2023

Date: 31/07/2023

Counsel For Appellant: Alok Yadav

Counsel For Respondent: Prasanna Prasad

Click Here To Read The Order