In Brief
The appellants imported machines seized by Customs for unpaid duty. While duty assessment was pending, the Customs authorities granted them custody of the machines. They then allegedly sold the machines, leading to criminal charges for breach of trust. The Supreme Court allowed their appeal, holding that importers retain ownership and the Customs claim is limited to duty payment—there is no entrustment of property necessary for breach of trust charges. Additionally, after the Settlement Commission completed adjudication and quantified all dues, no live cause of action remained for criminal prosecution. The FIR was quashed.
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