2013 (6) TMI 807 - HC - Customs

Summary

Issues Involved:
The judgment involves issues related to the seizure of gold biscuits under Section 135(1)(b)(i) of the Customs Act, 1962, the challenge against the rejection of the prayer for return of seized gold biscuits, the departmental proceeding leading to the confiscation of the gold biscuits, the decision of the Customs, Excise and Service Tax Appellate Tribunal allowing redemption of the gold biscuits on payment of fine, duty, and penalty, and the application for return of seized gold biscuits under Section 457 of the Code of Criminal Procedure.

Seizure and Departmental Proceeding:
A complaint was filed against the petitioner for possession of gold biscuits of foreign origin without valid documentation. The Customs Authorities seized the gold biscuits, and a departmental proceeding resulted in the absolute confiscation of the gold biscuits and imposition of a penalty on the petitioner.

Customs Tribunal Decision:
The Customs, Excise and Service Tax Appellate Tribunal allowed the petitioner to redeem the gold biscuits on payment of a fine, duty, and reduced penalty, considering the purchase of goods from a broker and the nature of the items seized. The Tribunal upheld the confiscation but permitted redemption.

Application for Return of Seized Gold Biscuits:
The petitioner sought the return of the seized gold biscuits under Section 457 of the Code of Criminal Procedure. The Metropolitan Magistrate rejected the prayer, stating that Section 457 does not apply to seizures by Customs Authorities.

Judicial Review and Decision:
The High Court reviewed the Tribunal's decision and the Magistrate's order. It noted that the Tribunal did not exonerate the petitioner from the allegations, allowing for the continuation of the criminal trial alongside the departmental proceeding. The Court emphasized the separate nature of these proceedings and the need for rare circumstances to quash a criminal proceeding.

Disposition and Order:
The Court rejected the prayer for quashing the proceeding but allowed the return of the seized gold biscuits to the petitioner upon furnishing a bond. It directed the Trial Court to frame charges promptly and complete the trial within six months. The application was disposed of, permitting the return of the gold biscuits to the petitioner.