In Brief
Union of India sought recovery of customs duty on imported goods that remained in warehouse beyond the permitted period because the importer failed to request their release. The Supreme Court held that custom duty must be assessed on the basis of sale proceeds realised from the auction of such goods, not on the duty applicable when the goods were imported or when the warehouse period expired. The Court directed that any invoked bank guarantees be adjusted against the final dues and the balance transferred to the respondent within three months as per the High Court's prior directions."
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