Law: Customs Act, 1969

Section: 201

Customs Act (IV of 1969)--S. 201--Auction of goods by Customs Authorities--Claim for recovery of balance sale amount--Jurisdiction of civil Court--Appellants/importer, failing to get clearance of goods, served with notice from Port Trust Authorities in whose care and custody goods were lying that goods, having not been cleared, would be sold by public auction--Appellants taking no steps as provided by Customs Act to challenge auction proceedings--Dispute being about the balance amount of sale proceed, civil Court, held, had jurisdiction in the matter--Appellants were found entitled to balance of amount left out from sale proceeds after deducting customs duty and demurrage charges etc. JUDGMENT The appellant imported 450 cases and one carton containing F /Match Oil additives from U.S.A. against import licence on payment of price to the exporter. The goods were shipped on board the 'President Eisenhover' which discharged the same at Karachi in the custody of Karachi Port Trust. The appellant through United Shippers, the Clearing and Fowarding Agents, Karachi filed bill of entry on 23-1-1980 for taking delivery of the goods. The respondent No. 1 disputed the I.T.C. classifications of the goods, whereupon the appellant/ demanded show-cause notice for submitting a reply. In the meantime, the appellant also applied for permission to remove the goods into the bonded warehouse pending the determination of I.T.C. classification of the goods. This request was allowed on 17-5-1980. The respondent No. 1 did not issue any show-cause notice to the appellant, nor bill of entry was passed for clearance of the goods. On 3-6-1980 the appellant received a notice from the Karachi Port Trust in whose care and custody the goods were lying, that the goods would be sold by public auction. On 1-7-1980 the appellant applied for stay of the auction as the goods were pending clearance. It was stayed for one month. However, the appellant came to know that the goods were auctioned and the defendants have recovered Rs.1,33,500 as sale proceeds from the auction purchase. The appellant claimed that it is liable to pay Rs.46,095 towards customs duty, sales tax, income-tax and demurrage charges…

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