- (1.) We have heard learned counsel on both the sides. Delay condoned. Even at the stage when the goods were seized, the respondents hastened to move a petition under Article 226 before the High court and obtained aninterdiction of further proceedings. The learned Single Judge also directed the release of the seized goods. In the appeal preferred by the Revenue, the revenue was worse off than it was before the appeal as the division bench went further and directed that the respondents may even export the goods during the pendency of the statutory adjudication.
(2.) We fail to appreciate how this intervention could have been made by the High court in a matter of this kind at that particular stage. Shri chidambaram, learned Senior Counsel, however, submitted that the respondents would in any event be entitled to have the goods released on payment of fine in lieu of confiscation even if there was such confiscation. He said that in that view of the matter even the prospect of an order of confiscation of the goods in the statutory adjudication need not detain the export as the respondents could always pre-empt confiscation by payment of fine in lieu thereof.
(3.) This submission looks attractive on the face of it but on closer scrutiny it is not as sound as it is attractive. The proceedings of seizure and confiscation are proceedings in rem. Until the culmination of the adjudication it is difficult to envisage any right on the part of the respondents from whom they are seized to export them on the basis of a future title they expect to acquire by payment of fine. The learned counsel, however, says that it would earn foreign exchange for the country. But sanctity of legal proceedings cannot be whittled down on grounds of such expediency.;