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2019 (4) TMI 539 - HC - CustomsRe-import of Export goods - Floating Crane - liability of Customs Duty - seizure of goods - petitioners contend that, since the vessel is reimported after the export, Notification No.94/96 dated 16.12.1996 has applicability and the case is covered by Entry Sr. No.3 which does not call for payment of duty - Held that:- In the instant matter, there is absolutely no material placed, nor is there any indication in the seizure memo as regards the reason to believe that the material collected or relied upon is available for taking such drastic action. It is true that sufficiency of the grounds is not a justiciable issue, however, there must exist a ground basically which needs to be reflected in the order. Judicial review is not against the decision as such, but against the decision making. The Court cannot dis-set each and every materials which has gone into decision making, and in the reported matter, exactly such approach was adopted. It is canvassed by the petitioners that there is no material before the officer for forming an opinion and the question is not being raised as regards adequacy of such material. The terms 'the reason to believe' appearing in section 110 does not mean the subjective satisfaction of the officer concerned. The officer has to act in a reasonable manner and the exercise of power shall not be arbitrary and the powers are liable to be used in accordance with the restraints imposed by law. Drawing parallel inference in the instant matter, it does appear that the proper officer has not indicated any reason to believe that the goods are liable to confiscation. It is not a matter of controversy that by application of Exemption Notification, no duty was levied and 'out of charge' order was issued two years back. Even otherwise, it was open for the respondent authorities to initiate proceedings under section 28 of the Customs Act, however, without taking the steps permissible in law, the extreme action of seizure of goods has been resorted to which appears to be high handed and arbitrary. The vessel has been cleared and 'out of charge' order has also been issued. As such, the issuance of order of seizure is bad in law. The contention that, it is a case of misrepresentation or fraud also does not deserve consideration. The vessel has been released after issuance of due permission. Even in case of mere non payment of duty, it cannot be treated and read as collusion or willful misrepresentation or suppression of facts. By no stretch of imagination, it can be contended in the instant matter that the petitioners have acted willfully with an intent to evade the duty or they are guilty of misstatement or suppression of facts - Also, it cannot be contended that the petitioners have misstated or suppressed the material facts. The extreme action taken by the respondents of the seizure of vessel after lapse of about two years from the date of issuance of 'out of charge' order is arbitrary. The petitioners are directed to keep alive the bank guarantee of ₹ 6 crore furnished to this Court up to 29.5.2019 - petition disposed off.
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