Seized 32MT Betel Nuts Destroyed during Pre-Trial Stage: Meghalaya HC orders Customs Dept to Issue Refund of Rs. 60L [Read Order]
It was ordered to refund Rs. 60 lakhs to the petitioner within eight weeks from the presentation of the order. If the refund was not processed within this period, interest at a rate of 12% per annum would apply.
Meghalaya High Court – Seized 32MT Betel Nuts – Meghalaya HC orders Customs Dept to Issue Refund – Seized Betel Nuts – Taxscan
Meghalaya High Court – Seized 32MT Betel Nuts – Meghalaya HC orders Customs Dept to Issue Refund – Seized Betel Nuts – Taxscan
The Meghalaya High Court has ruled that seized goods by the customs cannot be destroyed during the pre-trial stage, directing a refund of Rs. 60 lakhs for 32,000 kg of betel nuts that were destroyed.
Petitioner Laltanpuii sought compensation for betel nuts of 32MT seized on October 28, 2017, which were destroyed before the trial concluded. Initially, the goods were seized by the customs department, and despite requests for provisional release under Section 110A of the Customs Act, 1962, the release was not granted.
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The Customs Excise and Service Tax Appellate Tribunal ( CESTAT ) Kolkata overturned the seizure on December 9, 2020. This decision was upheld by the Meghalaya High Court on October 28, 2021, and later by the Supreme Court on October 31, 2022, with the special leave petition being dismissed. Despite these rulings, the customs department did not implement the orders, leading to the destruction of the seized goods during the pre-trial stage.
The petitioner filed a writ petition seeking a refund of the value of the destroyed goods, assessed at Rs. 88 lakhs, plus interest from the date of the CESTAT order. The petitioner’s counsel argued that the department was obligated to refund the assessed value based on prior judgments from the High Courts of Calcutta and Delhi, which had ruled in favour of such claims.
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However,on the contrary, the respondents’ counsel argued that the betel nuts were destroyed as they were deemed unfit for human consumption, according to a State Public Health Laboratory report dated December 11, 2017. The customs department had the authority to destroy such goods under the Disposal Manual.
The respondents-customs department also contended that the petitioner had requested the provisional release of the betel nuts at a reduced price and was aware of their condition and value, challenging the claim for a refund.
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The high Court noted that the primary issue was determining the refund amount. It was observed that this issue had been previously addressed by the Court, which, in an order dated April 24, 2024, had directed the DSGI to obtain instructions on an acceptable refund amount from the respondents.
Since no specific instructions were received and the commissioner of customs (preventive) maintained their position, the Court decided to rely on the order dated April 24, 2024, to resolve the matter without further deliberation on other aspects.
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Consequently, the bench of Justice H. S. Thangkhiew Court directed the Commissioner of Customs (preventive) to refund Rs. 60 lakhs to the petitioner within eight weeks from the presentation of the order. If the refund was not processed within this period, interest at a rate of 12% per annum would apply.
The petition was disposed of accordingly. Adv. N. Dasgupta and Adv. S.D. Upadhya appeared for the petitioners and Dr. N. Mozika, DSGI with Adv. Pradhan appeared for the department.
To Read the full text of the Order CLICK HERE
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