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2023 (9) TMI 1298 - PUNJAB AND HARYANA HIGH COURTSeeking release of seized goods - goods purchased by the petitioner from an importer - privity of contract - banned goods or not - Allegation of undervaluation on the basis that other importers have imported the same goods at higher rate - HELD THAT:- As per definition under Section 2(25) of the Act, the term “imported goods” clearly changes the nature, once the same are cleared for home consumption. Admittedly, in this case, the goods were duly cleared in favour of the importer and were subsequently sold to the present petitioner for home consumption. Coupled with the above, the authorities have not challenged the sale made by the said importer in favour of the present petitioner. Therefore, the respondents were not within their rights to seize/ confiscate the said goods. Principle of Natural Justice - HELD THAT:- No notice was served upon the petitioner before such an action was taken - It is not a case where the petitioner was dealing in some illegal or banned goods, which had to be confiscated - where the goods are not banned or against any violation of any other law, a business transaction cannot be ruined at the whims and fancies of the respondents. Merely because one of the importer was successful in clicking a deal for a lesser amount of price, cannot be a reason for such a bizarre action. Allegation of undervaluation on the basis that other importers have imported the same goods at higher rate - HELD THAT:- There is nothing on record to show that the price at which the said importer had imported the said goods was wrong and it may be a case that the other importers are purposefully importing the said goods on a higher price for higher profits. Fixation of price of the goods is absolutely relative and based on multiple factors, which two businessmen take a call before entering into an agreement. It is not a case where diamond worth Rs. 100 Crores has been imported at Rs. 100/- to avoid tax. However, in case it is found to be a fake diamond then probably Rs. 100/- could also be a higher price. The seizure memo dated 14.02.2023 (Annexure P-1) is quashed and the respondents are directed to release the goods seized vide seizure memo dated 14.02.2023, forthwith - Petition allowed.
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