P. B. Bajanthri, J.—In the instant LPA the appellant - Department of Customs has prayed for the following relief:—

“That this appeal is directed against the order dated 25.1.2011 passed by Hon’ble Mr. Justice S.N. Hussain in C.W.J.C. No. 2221 of 2005 whereby and where under the writ application has been allowed directing the respondents to pay Rs. 14,63,684 within four months and also to pay the interest at the rate of 12% per annum from the date of seizure upto the date of payment of the entire amount. It has further been directed that any loss accrued to the department of revenue may be compensated by deducting the amount of loss from the pocket of the authority due to whose mistake the public exchequer has been burden.”

2. The respondent Krishna Bahadur Chhetri had filed writ application in which he has prayed for the following relief:—

“That this is an application, praying for issuance of appropriate writ/order/direction to the respondent-authorities to make payment of the difference/balance amount Rs. 14,63,684 to the petitioner alongwith lawful interest accrued thereby out of assessed and admitted value of the goods at the time of seizure (Rs. 21,68,100/-) minus the sale proceeds refunded to the petitioner (Rs. 7,04,416/-) alongwith interest and for any other relief or reliefs the petitioner is entitled in the eye of law.”

3. Respondent is into betel nuts trading business. He was transporting betel nuts from Siliguri to Delhi via State of Bihar. The truck was intercepted by the Customs Department of the State of Bihar and goods and truck were ceased by the Customs Department. To that effect seizure memo/report was prepared on 22.01.1999 vide Annexure - 1 to the writ petition wherein the Customs Authority taken note of betel nuts quantity to the extent of 22,275 kgs (net 21,681 kgs) and it has been approximately valued at Rs. 21,68,100/-.

4. Similarly, truck bearing registration number AS-25- 4308 was valued at Rs. 8,00,000/-. Such seizure of goods and truck of the respondent was subject matter of adjudication order no. 8/CC/ADJ/2000 dated 16.11.2000 by which the Commissioner of Customs passed the following order:—

“ORDER

1. I order for confiscation of betelnuts of third country origin weighing 21,681 Kgs. valued at Rs. 21,68,100/- seized in this case under Sec.111(d) of Customs Act, 1962 for the detailed reasons recorded above.

2. I order for confiscation of the truck bearing Regn. No. AS-25-4308 under Sec. 115 (2) of the Customs Act,1962 for the detailed reasons recorded above. However, I give the owner an option to redeem the said truck on payment of a fine of Rs. 1,00,000/- (Rupees one lakhs) under Sec. 125 of the Customs Act, 1962. I also order that Rs. 1,00,000/- (Rupees one lakhs) paid towards cash security deposited at the time of provisional release should be appropriated towards the fine so levied.

3. I impose the following persons/firms personal penalties on the under Sec.112(b) of the Customs Act, 1962 for detailed reasons recorded above.

i. Sri Vijay Singh Daga

Managing Director of

M/s Bikaner Assam Roadlines

India Ltd.

(address given in the notice) Rs.2,00,000/-

(Rs. Two Lakhs only)

ii. Sri Krishna Bahadur Chhetriya

Prop. of M/s Dahal Agro Products

Dhumpara

(address given in the notice) Rs.2,00,000/-

(Rs. Two Lakhs only)

iii. Mrs. Kamala Devi Baid,

Prop. of M/s Baid Brothers Nokha(Raj.)

(address given in the notice) Rs.2,00,000/-

(Rs. Two Lakhs only)

iv. Shri Jitend a Kr. Jat.

Driver of the seized truck

(address given in the notice) Rs.10,000/-

( Rs. Ten thousand only)

v. Sri Sanjeev Kumar,

Khalasi of the seized truck

(address given in the notice) Rs.5,000/-

(Rs. Five thousand only)

The financial status of the accused persons/firms and the gravity of offence committed by them have been taken into consideration in determining the quantum of penalty imposed upon them.

(B.R.MEHRA)

COMMISSIONER OF CUSTOMS

PATNA. ”

5. Feeling aggrieved and dissatisfied with the order of the Commissioner dated 16.11.2000, respondent invoked remedy before the