2011 (3) TMI 1291 - HC - Customs

Confiscation of 5 gold biscuits with foreign markings totally weighing 582.8 grams - Refund claim on sale of gold - Held that - Since, the Assistant Commissioner of Customs, sold out the 5 gold biscuits overlooking the order passed by the Commissioner of Appeal, dated 28-8-1997, allowing the petitioner to redeem the gold on payment of fine and penalty the action of the Assistant Commissioner in selling the gold biscuits is contrary to the earlier order passed by the Commissioner of Appeal dated 28-8-1997 - assessee is entitle to get refund - Decided in favor of the assessee.

Summary

Issues:
1. Validity of the order passed by the Revisional Authority dated 11-10-2006.
2. Entitlement of the petitioner to the balance amount along with interest from the sale proceeds of confiscated gold biscuits.

Issue 1: Validity of the order passed by the Revisional Authority dated 11-10-2006:
The petitioner challenged the order passed by the Revisional Authority on 11-10-2006, seeking the return of the gold biscuits confiscated or the balance amount from their sale proceeds. The petitioner argued that the order should have allowed for the return of the gold biscuits or the remaining amount after deducting the fine and penalty. The petitioner relied on a Bombay High Court judgment for a similar direction. However, the respondents contended that the order passed by the Revisional Authority settled the issue, allowing the petitioner to redeem the gold on payment of the fine and penalty. The court held that the Revisional Authority's order was final and that the balance amount after deducting the fine and penalty should be returned to the petitioner.

Issue 2: Entitlement of the petitioner to the balance amount along with interest from the sale proceeds of confiscated gold biscuits:
The petitioner claimed entitlement to the balance amount along with interest from the sale proceeds of the confiscated gold biscuits. The respondents argued that the gold was confiscated and sold by the Assistant Commissioner, and only the balance amount after deducting the fine and penalty should be returned. The court noted that the Assistant Commissioner's action of selling the gold was contrary to the earlier order allowing redemption. The court directed the respondents to refund the balance amount along with interest at the rate of 9% per annum from the date of the Revisional Authority's order. The court further emphasized that the respondents should pay interest at 6% per annum if the amount is not refunded within six weeks.

In conclusion, the court disposed of the Writ Petitions, ordering the refund of the balance amount from the sale proceeds of the confiscated gold biscuits along with interest. The connected Miscellaneous Petition was closed without any costs.