Quick Summary: Bharat Water Works, owned by Mr. Rajendra Sanghvi, faced a legal battle over customs dues. The Bombay High Court ruled on the freezing of their bank account and factory. Mr. Sanghvi is required to pay Rs. 23.50 lakhs to unfreeze the account and factory.
Bharat Water Works, through its owner Mr. Rajendra Sanghvi, challenged the freezing of their bank account and factory by the Customs Authorities. The company only found out about this in May 2025 when their bank account was frozen.
Mr. Sanghvi's Argument:
Ms. Chandni Tanna, representing Mr. Sanghvi, argued that the freezing was not right. She referred to Section 142 of the Customs Act, suggesting that the Customs Authorities could have sold the held goods, like photocopy machines, to get the money owed.
Customs Authorities' Argument:
Mr. Siddharth Chandrashekhar, for the Customs Authorities, argued that the machines couldn't be sold because of ongoing legal actions started by Mr. Sanghvi. He insisted that all legal steps were followed correctly.
Final Responsibility:
The court confirmed that Mr. Sanghvi's responsibility for the payment had been settled. Attempts to avoid this responsibility, including denying ownership of the goods, did not work.
Old Machines:
The court noted the delay in selling the machines but explained that by the time the payment responsibility was confirmed, the machines were too old to be sold.
Payment Agreement:
Mr. Sanghvi agreed to pay Rs. 23.50 lakhs by December 20, 2025. This amount reflects the customs dues after accounting for previous payments.
Conditions for Unfreezing:
If the payment is made, the freeze will be lifted, and the factory will be released. The Customs Authorities must then officially remove the freeze by December 31, 2025.
Interest Waiver:
The court decided not to add extra interest because of delays partly caused by the Customs Authorities. The dues were set at Rs. 23.50 lakhs as a full settlement.
Future Actions:
If Mr. Sanghvi fails to pay, the Customs Authorities can go ahead with selling the factory. They may also ask for interest if the payment is not made on time.
This judgment, delivered by Justices M.S. Sonak and Advait M. Sethna, highlights the complexities of customs disputes and the importance of timely legal compliance.
