Detention of Goods for Export under Suspicion: CESTAT Rules No Basis for Seizure or Confiscation, Orders Release [Read Order]

The Mumbai Bench of Customs,Excise and Service Tax Appellate Tribunal(CESTAT) rules no basis for the seizure or confiscation of goods detained for export under suspicion, as they were found to match the declared description, caratage, and value.

Happy Gems,appellant-assessee,presented goods for export, which were detained under suspicion on 24.01.2023. No action was taken by the authorities until 29.05.2023, when the goods were examined in the presence of independent panchas and found to match the declared description, caratage, and value.

Despite this, the goods were seized, and a show cause notice was issued on 27.06.2023, asking why they should not be confiscated and why a penalty should not be imposed. The case was contested, and the impugned order-in-original was passed.

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The assessee's counsel stated that Customs suspected the package, presented for export under Shipping Bill No. 6373800 dated 23.12.2022, was empty. The package was detained on 24.01.2023, and a detailed examination was conducted on 29.05.2023 in the presence of independent panchas. The goods were found to match the declared description, caratage, and value. The counsel argued that there was no reason for confiscation or penalty.

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The Department's counsel submitted a letter dated 03.12.2024 from the Assistant Commissioner of Customs, providing details of events between 23.12.2022 and 29.05.2023. The letter mentioned that statements were recorded from the assessee's director on 30.12.2022, the custodian on 05.01.2023, and the exporter on 24.01.2023. However, the letter did not explain why it took over four months for Customs to examine and seize the goods after their detention on 24.01.2023.

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A single member bench of Anil G.Shakkarwar(Technical Member) reviewed the case and the submissions made. It found that Customs took no action on the detained goods from 24.01.2023 to 29.05.2023. On 29.05.2023, the goods were examined and found to match the declaration in the shipping bill. As there was no reason for seizure, the tribunal set aside the impugned order and directed the Commissioner to release the goods within two weeks, upon presentation of the final order by the assessee.

To Read the full text of the Order CLICK HERE

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