- (1.)This petition seeks quashing of seizure of goods of the petitioner and a consequential direction to permit clearance of goods kept at the Container Freight Station, Ludhiana.
(2.)Case of the petitioner is that it imported scrap under the Open General Licence Scheme in February, 2011 and filed Bills of Entry declaring the goods to be Heavy Melting Scrap. Duty was accordingly paid but the goods were seized and seizure memos, were prepared on the allegation that higher rate of duty may be payable. According to the petitioner, the seizure was without any justification as the goods cannot be held to be liable to confiscation in any manner. Some material which is said to be part of machinery is also in practicable terms scrap and cannot be classified as re-rollable products or machinery. Further case of the petitioner is that though instructions have been issued by the Central Board of Excise and Customs to the effect that option of provisional release should be ordered to avoid unnecessary detention of goods, unless the goods are prohibited, instead of directing provisional release, the goods were illegally seized under Section 24 of the Customs Act, 1962 (for short, "the Customs Act"). If the goods could be put to more than one use, the same could be mutilated, to accept the stand of the importer that the goods were scrap. The stand of the petitioner that the goods are scrap, is also supported by Chapter Note 8 of Section 15 of the Customs Tariff Act.
(3.)In response to the notice, a reply has been filed on behalf of the Directorate of Revenue Intelligence, Ludhiana, raising a preliminary objection that the petitioner had alternative remedy of seeking provisional release of goods under Section 110A of the Act. The petitioner also has a remedy of seeking storage of goods under Section 49 of the Act. The goods are prime material or re-rollable material and have been misdeclared as Heavy Melting Scrap, resulting in evasion of duty. The goods were examined and were found to be stuffed with used complete Fork Lifts/Engine Blocks/Cylinder Heads and parts of heavy machinery. Search was conducted at the premises of the petitioner and the goods were seized, on account of the belief that there was misdeclaration.