Gujarat HC orders Customs Dept to Expedite release of Base Oil Worth ₹67 Lakhs after Judicious Disposal [Read Order]

Gujarat HC - Customs Dept - of Base Oil - Judicious Disposal - taxscan

The Gujarat High Court has ordered the Customs Department to conduct an “expeditious and judicious” disposal of case property so as to ensure that the owner such seized property does not suffer unnecessary losses and the authorities are also saved from maintaining custody of such property.

Justice Ilesh Vora, was considering a criminal application filed by S K Industries involving 1,03,120 kilograms muddamla seized base oil. After following procedure, the seized base oil, imported by the petitioner herein and after clearance of the port authority, it was about to reach at the destination. Pursuant to the FIR, samples were taken from the seized oil.

The High Court, relied on a Supreme Court ruling in Sundarbhai Ambalal Desai Vs. State of Gujarat , whereby the Supreme Court observed that case property like vehicles, machines etc. found lying in the police station for long time, would become junk and loosing their value and therefore, powers under Section 451 of the Cr.P.C should be exercised promptly, so that there may not be further chance of tempering with the articles etc.

“In this backdrop, the petition moved by SK Industries, involved in the business of importing and trading of base oil, was allowed by directing the release of seized goods subject to a solvent surety to the tune of 1.5 times of value of seized goods. The Petitioner’s goods were seized from the Kandla Port. It was averred that the goods reached Kandla Port in September 2021 after the completion of mandatory processes under the Customs Act. Accordingly, the e-challan for storage of goods was obtained but before the goods could reach the destination, the police detained the vehicles and the base oil on the ground that it was transported without the requite licenses,” the High Court observed.

While concluding the order, the High Court held that “the petitioner herein is authorized person of the company. In this background facts, this Court is of the view that the Courts below have not properly exercised their powers judiciously. It is required to be considered that, the expeditious and judicious disposal of the case property would ensure that the owner of the article would not suffer because of its remaining unused. Court or police would not require to keep the article in safe custody, as it would save the cost of storage etc.”

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