Court Cites Violation of Section 144 of the Customs Act, 1962; Orders Release of Seized Goods
In a significant judgment, the Gujarat High Court has declared the seizure of goods imported by M/s Arihant Agro Distillation And Liquid Terminals Limited as illegal, ordering their immediate release. The court found that the Directorate of Revenue Intelligence (DRI), Jamnagar, and Customs Officer, Hazira, violated Section 144 of the Customs Act, 1962, by collecting samples of the imported goods without the presence of the owner.
The Division Bench comprising Mr. A.S. Supehia and Pranav Trivedi, JJ., presided over the case, which centered around the legality of sample collection procedures for Distillate Fuel Oil imported by the petitioner. The court observed that samples collected by both Customs Officer, Hazira, and DRI, Jamnagar, were unauthentic due to non-compliance with Section 144, which mandates sample collection in the presence of the owner.
The controversy arose when conflicting test reports from Vadodara and Visakhapatnam laboratories led to the seizure of goods under suspicion of non-compliance with Indian Standards (IS) for the product. The Vadodara laboratory's report favored the petitioner's compliance claims, while the Visakhapatnam report supported DRI's allegations of deliberate manipulation to evade compliance standards for High Flash High Speed Diesel (HFHSD).
The judgment emphasized that any sample collected without adhering to the statutory requirement of Section 144 cannot be relied upon for legal actions like seizure. The court directed the respondent authorities to undertake a fresh sample collection exercise in the presence of the petitioner, ensuring compliance with the law.
The court also ordered an investigation to determine accountability for the procedural lapses and recommended necessary actions against erring officers under relevant provisions or administrative instructions.
This ruling not only reinstates the importance of following statutory procedures in customs operations but also serves as a reminder of the judiciary's role in safeguarding legal rights against administrative overreach.
Bottom Line:
Customs Act, 1962 - Mandate of Section 144 - Proper procedure for sample collection - Samples must be collected in the presence of the owner; failure to do so renders the samples unauthentic and invalid for legal reliance.
Statutory provision(s): Customs Act, 1962 - Section 144
