Karnataka High Court
Shri Suriya vs The Intelligence Officer on 14 June, 2022
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 14TH DAY OF JUNE 2022
BEFORE
THE HON'BLE MR. JUSTICE M.I.ARUN
WRIT PETITION No.6765 OF 2022 (T-CUS)
BETWEEN:
SHRI. SURIYA,
S/O ARJUNAN,
NO.1015, B-2 BLOCK, GENESIS ECOSPHERE,
NEELADRI NAGAR, ELECTRONIC CITY,
BENGALURU - 560 100.
(AGED ABOUT 38 YEARS)
... PETITIONER
(BY SRI.DERRICK SAM, ADV. AND
SRI.PRAKASH D., ADV.)
AND:
1. THE INTELLIGENCE OFFICER,
DIRECTORATE OF REVENUE INTELLIGENCE,
NHAVA SHEVA - II, MUMBAI ZONAL UNIT,
208, 209, 215, 2ND FLOOR, D-WING,
M/S. NAVI MUMBAI SEZ COMMERCIAL COMPLEX,
SECTOR 11, DRONAGIRI, RAIGAD,
NAVI MUMBAI - 400 702.
2. THE DEPUTY DIRECTOR,
DIRECTORATE OF REVENUE INTELLIGENCE,
BENGALURU ZONAL UNIT,
OPP. BDA COMPLEX, H.B.R. LAYOUT,
KALYAN NAGAR POST,
BENGALURU - 560 068.
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3. THE COMMISSIONER OF CUSTOMS,
JAWAHARLAL NEHRU CUSTOM HOUSE,
NHAVA SHEVA V COMMISSIONERATE,
TAL-URAN, RAIGAD,
MAHARASHTRA - 400 707.
... RESPONDENTS
(BY SRI.JEEVAN J. NEERALGI, ADV.)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
& 227 OF THE CONSTITUTION OF INDIA PRAYING TO
QUASH THE SEIZURE MEMO BEARING DRI/MZU/NS-1/INT-
51/2021 DATED 16.07.2021 AT ANNEXURE - A, ISSUED BY
THE 1ST RESPONDENT AS IS NOT ISSUED BY THE "PROPER
OFFICER" UNDER THE ACT AND HENCE BAD IN LAW AND
WITHOUT JURISDICTION AND ETC.
THIS WRIT PETITION COMING ON FOR PRELIMINARY
HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE
FOLLOWING:
ORDER
A Range Rover Sport 5.0 SVR Car bearing Reg. No.PB-36-H-0900 has been imported to India by evading duty by fraudulently availing duty exemption to a tune of Rs.60,13,920/-. Hence, the said Car has been seized by respondent No.1 and a seizure memo dated 16.07.2021 bearing No.DRI/MZU/NS-1/INT-51/2021 vide Annexure - A to the writ petition is issued. Subsequent to the seizure, petitioner claiming to be the owner of the said Car has sought for release of the same. Pursuant to his application, -3- an order of provisional release of goods under Section 110A of the Customs Act, 1962 dated 29.12.2021 bearing order No.06/PR/OS/2021 bearing S/26-Misc-1195/2021- 22/Grp.5B JNCH has been passed by the respondent No.3. Aggrieved by the seizure as well as the terms of the order of the provisional release, the instant writ petition is filed.
2. During the course of the arguments, the learned counsel for the petitioner submitted that the matter requires adjudication in terms of the provisions of the Customs Act, 1962 and in the instant writ petition, he limits his challenge only to the terms of the order of provisional release of goods under Section 110A of the Customs Act, 1962. It is contended that subsequent to the seizure, there has been a provisional order passed releasing the vehicle. However, the terms imposed are harsh and arbitrary and requires to be set aside. The order of release is subjected to the following terms:-
"ORDER I hereby order to release the vehicle Range Rover bearing registration No.PB36H0900 provisionally under Section -4- 110A of the Customs Act, 1962 subject to fulfillment of following conditions:-
1. The beneficial owner shall pay the differential duty amounting to Rs.60,13,920/-
(Rupees Sixty Lakhs Thirteen Thousand Nine Hundred and Twenty Only).
2. Execute a Bond for Rs.29,48,000/-
(Rupees Twenty Nine Lakhs Fourty Eight Thousand only) with an undertaking that they shall pay the duty, fine and/or penalty as may be adjudged by the Adjudicating Authority, subject to appellate provisions under the Customs Act, 1962 as prescribed in para 5 of Circular No.35/2017-Customs dated 16.08.2017.
3. Execute a Bank Guarantee of Rs.1,50,00,000/- (Rupees One Crore Fifty Lakhs only) having clause binding the issuing bank to keep it renewed and valid till final adjudication of the case, or in the event of non-renewal of Bank Guarantee as above, the guaranteed amount be credited to the Government account by the bank on its own as prescribed in para 5 of Circular No.35/2017- Customs dated 16.08.2017."
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3. Learned counsel appearing for the respondents submits that the duty that has escaped is Rs.60,13,920/- and the petitioner is liable to pay the sum along with the interest and penalties and further contends that the conditions are in accordance with law and prays for dismissal of the writ petition.
4. The duty as per the respondents which is recoverable is Rs.60,13,920/-. Under the circumstances, it would be reasonable to ask the petitioner to deposit 50% of the maximum duty payable and provide bank guarantee in respect of other 50% along with necessary bond as demanded by the authority apart from an undertaking that the vehicle shall not be further encumbered or alienated pending disposal of the adjudication. Hence, the following:-
ORDER The conditions of release imposed in the order of provisional release of goods under Section 110A of the Customs Act, 1962 bearing Order No. 06/PR/OS/2021 bearing S/26-Misc-1195/2021-22/Grp.5B JNCH dated -6- 29.12.2021 issued by the respondent No.3 is modified as follows:-
(i) The beneficial owner shall pay 50% of differential duty out of Rs.60,13,920/- and execute bank guarantee in respect of other 50% and shall keep it renewed and valid till final adjudication of case, or in the event of non-renewal of Bank Guarantee as above, the guaranteed amount be credited to the Government account by the bank on its own as prescribed in para 5 of the Circular No.35/2017-Customs dated 16.08.2017.
(ii) Shall execute a bond of Rs.29,48,000/- with an undertaking that they shall pay the duty, fine and/or penalty as may be adjudged by the Adjudicating Authority subject to appellate provisions under the Customs Act, 1962 as prescribed in para 5 of Circular No.35/2017-Customs dated 16.08.2017. -7-
(iii) The beneficial owner shall not alienate or otherwise encumber the vehicle till the adjudication is completed.
(iv) The writ petition is disposed of accordingly.
Sd/-
JUDGE MH/-