Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2020 (12) TMI 204

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sdiction of this Court based upon an interim order passed by the trial Court. The said suit was filed much before the expiry of the lease period on 31.03.2020 and the interim order of status quo granted by the trial Court on 26.04.2019 also cannot extend beyond the extent of the period of lease itself nor it can validate the possession of the licensee beyond the period of lease. We do not see any reason to extend the scope of the civil suit, which may be so if the contention of the appellant/petitioner before us is to be accepted. There are no reason for the appellant/ petitioner to have invoked the writ jurisdiction of this Court on the basis of a status quo order granted by the trial Court in a civil Suit in which Customs Department was not at all a party. Nothing prevented him to even implead Customs Department also as Defendant in that very suit, so that all related issues could be adjudicated by one Court. This is what, the abuse of process of law is and if an observation of a learned single Judge in this process is given against the appellant/petitioner, he cannot be permitted to raise a plea against that in the intra court appeal. Appeal dismissed. - Writ Appe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Single Judge, the said status quo order was vacated and the writ petition itself was dismissed by the learned Single Judge on 27.07.2020 and as per the provisions of Section 58B of the Customs Act, 1962, the Importers/Customs House Agents whose goods were lying in the said Bonded Warehouse were directed to remove the said goods from the said Bonded Warehouse and the respondents were directed to give compliance report on the next date 25.08.2020 and the following order was passed by the learned Single Judge on 25.08.2020 . This matter is listed today under the caption 'for reporting compliance'. Learned counsel for the petitioner as well as R3 report that the warehouse is in the process of being cleared of the contents and Mr.A.P.Srinivas, learned Senior Standing Counsel seeks some more time to complete the process. This is recorded. 2. R3 is already in possession of the warehouse and is granted full liberty to take such action, as he may deem fit and necessary, to obtain gainful use thereof . 3. With the above observation this matter is closed. 6. In the present writ appeal, the learned counsel for the appellant, Mr.Sajeev Kumar, submitted that th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... on of the licensee during the period of the lease, which expired admittedly on 31.03.2020 . The present writ petition was filed in this Court on 02.06.2020 and even though initially an order of status quo was granted by the learned Single Judge of this Court, the same got vacated with a detailed findings and observations and the writ petition itself was dismissed by the learned Single Judge on 27.07.2020 . While verifying the compliance on 25.08.2020, the learned Single Judge came to the conclusion that since the lease period was already over, namely on 31st March 2020, the petitioner licensee could not be held to be in valid and legal possession and therefore recorded a finding that the lessor is already in possession of the Warehouse and is therefore granted full liberty to take possession as he may deem fit and necessary. 11. The appellant cannot take any exception to the said observation of the learned Single Judge, because, in the eye of law, after 31st March 2020 with the lease period being over, there is no legal right vested with the lessee to remain in possession and that the goods lying in the said bonded warehouse after cancellation of license by the Customs Dep .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... which the said license was cancelled by the concerned authority, clearly stipulates vide Section 58B (4) of the Act that where the license issued under Section 57 or Section 58 or Section 58A, the three different kinds of licenses, is cancelled, the goods warehoused shall within seven days from the date on which order of such cancellation is served on the licensee or within such extended period as the proper officer may allow, be removed from such warehouse to another warehouse or be cleared for home consumption or export. 16. Sections 57, 58, 58A and 58B of the Act are quoted below for ready reference. SECTION 57 Licensing of public warehouses . - The Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, licence a public warehouse wherein dutiable goods may be deposited. SECTION 58 Licensing of private warehouses . - The Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, licence a private warehouse wherein dutiable goods imported by or on behalf of the licensee may be deposited. SECTION 58A. Licensing of special .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ays. There is no case of extension of period under Sub-section (4) of Section 58B of the Act in the present case. Therefore, in the eye of law, the possession of the vacant licensed warehouse, after seven days of the impugned order passed by the Customs Authority on 29.05.2020, should be deemed to be with its owner only. Even assuming for argument sake that this observation may affect the right of the appellant/petitioner in the pending suit before the Civil Court, it is the appellant/petitioner who is to be blamed for this, because it is the appellant/petitioner who has invoked the extraordinary jurisdiction of this Court based upon an interim order passed by the trial Court. 18. The plaint of the injunction suit filed by the appellant/petitioner only seeks injunction against the third respondent/defendant from interfering with the peaceful possession during the period of the lease. The said suit was filed much before the expiry of the lease period on 31.03.2020 and the interim order of status quo granted by the trial Court on 26.04.2019 also cannot extend beyond the extent of the period of lease itself nor it can validate the possession of the licensee beyond the period .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates