CRIMPRO Return of Property Illegaly Seized

Collector v Villaluz G.R. No. L-34038

June 18, 1976
Ponente: Makasiar, J.
Customhouse, Pasay City, petitioner HON. ONOFRE A. VILLALUZ, as Judge of
the Circuit Criminal Court, 7th Judicial
District stationed at Pasig, Rizal, and
SALVADOR T. MASCARDO, as Collector
of Customs stationed at the MIA Airport
Customhouse, respondents.
Doctrine of the case:
A circuit judge cannot order return to importer of goods seized by the
Collector of Customs even if the criminal complaint against the importer is
dismissed by the said judge. Jurisdiction to replevin seized imported articles
belongs exclusively to the Bureau of Customs subject to appeal to the Court of
Tax Appeals.
FACTS:
Petitioner Collector of Customs, Salvador Mascardo filed against Cesar
Makapugay, a letter complaint with respondent Judge of the Circuit Criminal
Court for violation of NIRC, Central Bank Circular 265 and RA 1937 claiming
that Makapugay brought into the country 40 cartons of untaxed blue seal
Salem cigarettes and 5 bottles of untaxed Johny Walker Schotch Whiskey.
Respondent Judge assumed jurisdiction to conduct and did conduct the
preliminary investigation, and on July 6, 1971, issued the challenged order,
dismissing the case with prejudice and ordering the private respondent the
amount of P2,280, his passport, and 1 box of air-conditioning evaporator
only, as well as the forfeiture of 40 cartons of untaxed blue seal Salem cigars
and 5 bottles of Johny Walker Scotch Whiskey
Armed with said order, private respondent Makapugay demanded that
petitioner release the articles so stated. Petitioner Collector of Customs
refused to obey the order due to the prior institution of seizure proceedings
thereon. The refusal prompted respondent Makapugay to file a complaint
for Open Disobedience before the City Fiscal of Pasay City.
ISSUE:
Whether or not the items seized may be returned.

RATIO:
No. The dismissal of a case, even with prejudice, during the stage of
preliminary investigation does not bar subsequent prosecution and
conviction if the evidence warrants the re-filling of the same becomes next to
impossible. For the enforcement of such order would virtually deprive the
petitioner of the evidence indispensible to a successful prosecution of the
case against the private respondent. Worse, the order nullified the power of
seizure of the customs officials.
Respondent judge ignored the established principle that from the moment
imported goods are actually in the possession or control of the Customs
authorities, even if no warrant of seizure had previously been issued by the
Collector of Customs in connection with seizure and forfeiture proceedings,
 the Bureau of Customs acquires exclusive jurisdiction over such imported
goods for the purpose of enforcing the Customs law, subject to an appeal only
to the Court of Tax Appeals and to final review by the Supreme Court.
Such exclusive jurisdiction precludes the Court of First Instance as well as the
Cirrcuit Criminal Court from assuming cognizance of the subject matter and
divests suc courts of the prerogative to replevin properties subject to seizure
and forfeiture proceedings for violation of the Tariff and Customs Code
because proceedings for the forfeiture of goods illegally imported are not
criminal in nature since they do not result in the conviction of wrongdoer nor
the imposition upon him of a penalty.

RULIN G:
WHEREFORE, IN G.R. NOS. L-34243, 36376, 38688 AND 39525, THE PETITIONS
ARE HEREBY DISMISSED AND THE WRITS OF PRELIMINARY INJUNCTION AND/OR
RESTRAINING ORDERS ISSUED THEREIN ARE HEREBY LIFTED; IN G.R. No. L-
40031, THE PETITION IS HEREBY DISMISSED; AND IN G.R. NO. L-34038, THE
ORDER OF RESPONDENT JUDGE DATED JULY 6, 1971 IS HEREBY SET ASIDE AS
NULL AND VOID INSOFAR AS THE SAME DISMISSED THE CRIMINAL CASE WITH
PREJUDICE AND INSOFAR AS THE SAME DIRECTED THE RETURN TO PRIVATE
RESPONDENT THEREIN OF THE ARTICLES SEIZED FROM HIM WHICH ARE NOW
SUBJECT OF SEIZURE PROCEEDINGS BEFORE THE CUSTOMS AUTHORITIES, AND
THE WRIT OF PRELIMINARY INJUNCTION ISSUED THEREIN IS HEREBY MADE
PERMANENT. NO COSTS.