New Delhi: In a strong observation, the Supreme Court has set aside an order of the Punjab and Haryana High Court and directed it to hear afresh a matter, related to a private firm accused of duty evasion, as it was not dealt with in a way that it should have been.

"This is not the way the High Court should have dealt with the matter," observed the two-member bench of the Supreme Court comprising Justice Arijit Pasayat and Mukundakam Sharma, in an order, while disposing of an appeal filed by Directorate of Revenue Intelligence (DRI) earlier this month.

The case relates to a writ petition filed by Kundan Rice Mills Limited against seizure of its goods by the agency.

The High court had observed that prima facie there was nothing to show that the goods were liable for confiscation, hence, these should be released.

The High Court had also observed that the agency's demand for indemnity bond equivalent to the seizure value of goods and/or furnishing of bank guarantee equal to 10 per cent of the value of the goods, as stipulated by the Customs Law for the release of seized goods, was also not justified.

The company had also filed a contempt petition against DRI officials for not releasing the goods as directed by the High Court after which the Court had asked them to do so within a stipulated time.

Setting aside the order, the Supreme Court observed "The High Court appears to have decided the matter on merits finally even though that was not the stage for doing so and was beyond the scope of adjudication of the writ petition. This is not the way the High Court should have dealt with the matter."
Source : PTI