Case Note & Summary
The petitioner, Goodwill Industries, imported a consignment of Mixed Glycol vide Bill of Lading dated 16.02.2021. The supplier loaded the goods into the custom yard despite the petitioner's refusal to take possession, and did not refund the amount. This led to an investigation by the Directorate of Revenue Intelligence (DRI), and the Customs Department withheld the consignment. The consignment was tested, and the Test Report dated 04.06.2021 from the Central Revenues Control Laboratory (CRCL), Kandla, revealed that the goods were as per the description. Subsequently, the Commissioner of Customs passed an Order-in-Original No. MCH/ADC/MK/99/2023-24 dated 28.06.2023, permitting re-export of the goods subject to payment of a redemption fine of Rs.12,00,000/- and a penalty of Rs.8,00,000/-. The petitioner paid these amounts. However, the respondents failed to implement the order and allow re-export. The petitioner filed a writ petition seeking a mandamus directing the respondents to implement the order or refund the amounts. The court, after hearing the parties, directed the respondents to implement the Order-in-Original within four weeks, failing which they must refund the redemption fine and penalty with interest at 6% per annum from the date of payment until refund.
Headnote
A) Customs Law - Re-export of Goods - Implementation of Order-in-Original - Section 126 Customs Act, 1962 - The petitioner imported Mixed Glycol, which was detained by Customs. The Order-in-Original dated 28.06.2023 permitted re-export upon payment of redemption fine and penalty. The respondents failed to implement the order. The court held that the respondents must implement the order or refund the amounts paid. (Paras 1-8)
Issue of Consideration
Whether the respondents are obligated to implement the Order-in-Original dated 28.06.2023 permitting re-export of the disputed goods, and if not, whether the petitioner is entitled to a refund of the penalty and redemption fine paid.
Final Decision
The court directed the respondents to implement the Order-in-Original No. MCH/ADC/MK/99/2023-24 dated 28.06.2023 within four weeks from the date of the judgment. In case of failure, the respondents shall refund the redemption fine of Rs.12,00,000/- and penalty of Rs.8,00,000/- to the petitioner with interest at 6% per annum from the date of payment until the date of refund.
Law Points
- Customs Act
- 1962
- Section 126
- Order-in-Original
- Re-export
- Mandamus
- Refund of penalty and redemption fine
Case Details
2026 LawText (GUJ) (02) 814
R/SPECIAL CIVIL APPLICATION NO. 13305 of 2025
A.S. Supehia, Pranav Trivedi
MR HARDIK P MODH for the Petitioner, MS HARDIKA VYAS for the Respondents
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Nature of Litigation
Writ petition seeking implementation of an Order-in-Original permitting re-export of imported goods and refund of penalty and redemption fine.
Remedy Sought
The petitioner sought a writ of mandamus directing the respondents to implement the Order-in-Original dated 28.06.2023 permitting re-export of the disputed goods, and in the alternative, a refund of the penalty and redemption fine paid.
Filing Reason
The respondents failed to implement the Order-in-Original allowing re-export of the consignment despite the petitioner paying the redemption fine and penalty.
Previous Decisions
The Commissioner of Customs passed Order-in-Original No. MCH/ADC/MK/99/2023-24 dated 28.06.2023 permitting re-export of the goods subject to payment of redemption fine and penalty.
Issues
Whether the respondents are obligated to implement the Order-in-Original dated 28.06.2023 permitting re-export of the disputed goods.
Whether the petitioner is entitled to a refund of the penalty and redemption fine if the order is not implemented.
Submissions/Arguments
The petitioner argued that despite paying the redemption fine and penalty, the respondents have not implemented the order and have not allowed re-export.
The respondents, through their affidavit, did not dispute the order but failed to take steps for implementation.
Ratio Decidendi
The court held that once an Order-in-Original is passed permitting re-export upon payment of redemption fine and penalty, the Customs authorities are bound to implement it. Failure to do so entitles the petitioner to a refund of the amounts paid with interest.
Judgment Excerpts
The present writ petition has been filed praying for the following reliefs :
The affidavit tendered by learned Senior Standing Counsel Mr.Maunil Yajnik is ordered to be taken on record.
Procedural History
The petitioner imported goods in February 2021. The goods were detained by Customs after DRI investigation. The Commissioner passed an order on 28.06.2023 permitting re-export upon payment of fine and penalty. The petitioner paid the amounts but the order was not implemented. The petitioner filed the present writ petition in 2025. The court heard the matter and delivered judgment on 06.02.2026.
Acts & Sections
