- (1.) This petition seeks quashing of seizure memos. dated 15.4.2011 (Annexure P-2) and 30.4.2011 (Annexure P-3) effected by the Intelligence Officer of the Directorate of Revenue Intelligence (DRI), Ludhiana.
(2.) Case of the petitioner is that it purchased fourteen containers of heavy melting steel scrap (HMSS) on high sea sale basis. Bills of entry in respect thereof were filed with the Custom Freight Station (CFS), Ludhiana on 5.4.2011 for nine containers C.W.P. No.13131 of 2011 2 and on 27.4.2011 for five containers. In the said bills of entry, the petitioner declared that no customs duty was attracted, as the goods were scrap not exigible to any customs duty. However, the declaration of the petitioner was not accepted on the basis of report of a chartered engineer obtained by the DRI and the goods were declared to be re-rollable material in respect of first consignment and secondary material in respect of second consignment, exigible to 5% duty in the first case and 10% duty in the second case. The petitioner, accordingly, paid the said duty for the first consignment and sought release of goods. The reason for not paying duty for second consignment is stated to be absence of order under proviso to Section 46 of the Customs Act, 1962. Learned counsel for the petitioner submits that even as per valuation of the department, the petitioner is willing to pay duty for the second consignment also as soon as the assessment is made. Since the goods were not being released, this petition was filed.
(3.) The stand taken by the DRI is that on 22.7.2011, order, Annexure R-1, has been passed in respect of first consignment, permitting provisional release of seized goods subject, inter-alia, to the conditions that the petitioner furnishes bank guarantee equal to 25% of the market value of the seized goods and gives declaration that it will not challenge the value of the seized goods. In respect of second consignment, no such order of provisional release has been passed as documents have C.W.P. No.13131 of 2011 3 been received by the DRI from Customs Department only on 18.8.2011. Stand of Customs Department is that seizure has been effected by DRI and thus, Customs Department has no role in the matter.;