Case Note & Summary
The judgment concerns a batch of writ petitions filed by importers of industrial oil challenging the seizure of their goods by the Directorate of Revenue Intelligence (DRI) under Section 110 of the Customs Act, 1962. The lead petition is Special Civil Application No. 16799 of 2025. The petitioners argued that the DRI lacked jurisdiction to seize goods after they had been cleared for home consumption, and that the seizure memos were invalid. The court, however, held that DRI officers are 'proper officers' under the Customs Act and have the power to seize goods even after clearance, as seizure is a separate proceeding from assessment. The court also addressed the admissibility of test reports from the Central Revenues Control Laboratory (CRCL) and Mangalore Refinery and Petrochemicals Limited (MRPL), holding that such reports are admissible as evidence. The court emphasized that before any order of confiscation is passed, the principles of natural justice must be followed. The petitions were dismissed, upholding the seizure actions.
Headnote
A) Customs Law - Seizure of Goods - Section 110 of the Customs Act, 1962 - Power of DRI - The court considered whether DRI officers have the authority to seize goods under Section 110 after clearance for home consumption. Held that DRI officers are 'proper officers' under the Customs Act and have the power to seize goods even after clearance, as seizure is a separate proceeding from assessment. (Paras 1-25) B) Customs Law - Test Reports - Admissibility - The court examined the validity of test reports from CRCL and MRPL. Held that such reports are admissible as evidence and can form the basis for seizure, provided they are obtained in accordance with law. (Paras 26-40) C) Customs Law - Principles of Natural Justice - Confiscation - The court held that before any order of confiscation is passed, the principles of natural justice must be followed, including giving the importer an opportunity to be heard. (Paras 41-50)
Issue of Consideration
Whether the Directorate of Revenue Intelligence (DRI) has the power to seize goods under Section 110 of the Customs Act, 1962 after they have been cleared for home consumption, and whether the seizure memos and subsequent actions are valid.
Final Decision
The court dismissed all writ petitions, upholding the seizure actions by DRI under Section 110 of the Customs Act, 1962.
Law Points
- Power of seizure under Section 110 of the Customs Act
- 1962 is independent of assessment
- DRI officers are proper officers for seizure
- seizure can be made after clearance for home consumption
- test reports from CRCL and MRPL are admissible
- principles of natural justice must be followed before confiscation
