Meghalaya High Court Directs Customs Commissioner To Refund Rs. 60 Lakhs For Destroying Seized Betel Nuts

The Meghalaya High Court has directed the customs commissioner to refund Rs. 60 lakh for destroying seized betel nuts.

The bench of Justice H. S. Thangkhiew has observed that the Tribunal found that the goods were neither imported nor proved to be smuggled. Though the case was assailed before the Division Bench and ultimately before the Supreme Court, it was dismissed.

The goods of the petitioner, betelnuts weighing 32 MT, had been seized by the customs commissioner. The petitioner prayed for provisional release of the goods under Section 110A of the Customs Act 1962, which was not granted.

On an appeal by the petitioner before the Customs Excise and Service Tax Appellate Tribunal (CESTAT), the Tribunal set aside the seizure and allowed the appeal.

The order of the CESTAT on an appeal by the respondent was then affirmed by a Division Bench and was further affirmed by the Supreme Court vide order dated October 31, 2022, wherein the SLP against the order dated October 28, 2022, of the Court was dismissed. However, the orders passed by the Tribunal, which have been affirmed by this Court and the Supreme Court, were not implemented by the customs commissioner, and in the meantime, the seized goods had been destroyed during the pre-trial stage.

The petitioner filed the writ petition seeking a refund of the value of the seized goods and for other appropriate orders.

The petitioner contended that the customs commissioner, by destroying the seized betel nuts, is liable to refund the value of the goods, which were assessed at the time of seizure at Rs. 88 lakhs, along with interest, as may be decided by this Court, from the date of the order passed by the CESTAT. The department was bound to pay the value of goods assessed at the time of the seizure. The petitioner is therefore entitled to the refund.

The department contended that the betelnuts were destroyed inasmuch as they were unfit for human consumption, and as per the disposal manual of the Customs Department, commissioners have full powers to order the destruction of goods such as food stuff, spices, and other goods that are unfit for human consumption, amongst others. As the State Public Health Laboratory had found it unfit for human consumption, the betel nuts were destroyed and therefore could not be provisionally released to the petitioner.

The court while allowing the petition directed the customs commissioner to refund the amount of Rs. 60 Lakhs to the writ petitioner on sufficient proof of identity being provided, within a period of 8 weeks. In case of failure to comply with the order, interest on the expiry of the 8 weeks shall be payable on the refund amount at the rate of 12% per annum.

Counsel For Petitioner: N. Dasgupta

Counsel For Respondent: N. Mozika

Case Title: Smt. Laltanpuii Versus UOI

Case No.: WP(C) No. 192 of 2023

Click Here To Read The Order