UNION OF INDIA vs SHAKTI LPG LTD.

The Supreme Court held that under Section 72(1) and Section 72(2) of the Customs Act, 1962, the customs authorities are empowered to auction goods that have not been cleared by the importer after the expiration of the warehousing period. The Court found that the respondent, Shakti LPG Ltd., had surrendered their claim over the goods, which justified the auction. The Court upheld the auction proceedings and dismissed the appeals filed by the Union of India, affirming the legality of the actions taken by the customs authorities.