2015 (3) TMI 25 - HC - Customs

Confiscation of gold u/s 115 - Contraband gold was recovered from the middle seat of vehicle, fitted with two screws, in a false cavity, which contained two heavy packets wrapped with electrical insulation/adhesive tape - In prosecution case the accused were found not guilty , and were discharged under Section 135(1)(i) of the Customs Act, 1962. The sale consideration of the gold however, was not directed to be released - Held that - In the reply, it is stated that the consequential benefits, as claimed by the petitioner, in pursuance to order of CEGAT dated 30.12.1997, were neither quantified, nor any direction was issued to assess and to pay the difference of the price of gold, on the date when it was seized, and thereafter sold, and interest. - The CEGAT was required to assess, compute and issue directions for any consequential benefits, which it had intended to be paid in the order. This Court under Article 226 of the Constitution of India does not act as an executing court for any consequential directions. If no specific orders were passed with regard to consequential directions, the petitioner may approach appropriate authorities for its assessment/quantification and payment, in accordance with law. - Decided against assessee.

Issues:
1. Seizure and confiscation of gold biscuits by Customs Department
2. Legal proceedings under Customs Act, 1962
3. Appeal before Customs Excise and Gold (Control) Appellate Tribunal (CEGAT)
4. Consequential benefits and directions issued by CEGAT
5. Petitioner's claim for return of gold biscuits or monetary compensation
6. Court's jurisdiction under Article 226 of the Constitution of India

Analysis:

1. The case involved the seizure and confiscation of 50 gold biscuits by the Customs Department in a search of a vehicle on 1.6.1993 and 2.6.1993. The gold was recovered from a false cavity in the middle seat of the vehicle and was seized under Section 111(b) and (d) of the Customs Act, 1962. Subsequently, legal proceedings were initiated, and the gold was confiscated under Section 115 of the Customs Act, 1962, with penalties imposed.

2. A criminal case was registered, and the accused were found 'not guilty' and discharged under Section 135(1)(i) of the Customs Act, 1962. The sale consideration of the gold was not released pending court proceedings related to the seizure and confiscation. An appeal against the Commissioner's order was allowed by CEGAT, which found that the Department failed to prove its case and that the documents relied upon were not genuine.

3. CEGAT granted the appeal, stating that the Department did not establish the allegations against the appellants. The confiscation and penalties were set aside, and the appellants were entitled to consequential benefits. However, the specific quantification and payment of these benefits were not addressed in CEGAT's order.

4. The petitioner claimed for the return of gold biscuits or monetary compensation, including the difference between the market price of the gold and the amount for which it was sold, with interest. The court clarified that under Article 226 of the Constitution of India, it does not act as an executing court for consequential directions. If no specific orders were passed regarding consequential benefits, the petitioner should approach appropriate authorities for assessment and payment in accordance with the law.

5. Consequently, the writ petition was dismissed, emphasizing that the court's role was not to execute consequential directions but to ensure that the petitioner follows the appropriate legal procedures for quantification and payment of any benefits as directed by CEGAT.

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