2015 (10) TMI 2762 - HC - Customs

Smuggling - concealment of gold within the Pallet boxes of the TVs imported - seizure and confiscation - HELD THAT - Statement recorded with respect to concealed pallet boxes. To give quietus to the issue, the petitioner is hereby directed to furnish 100% Bank Guarantee for the value of the goods assessed within a week from the date of receipt of a copy of this order. On such furnishing of Bank Guarantee, the respondents shall release 7 pallet boxes except boxes 8 and 9 (B1 and B2). The other adjudication proceedings in accordance with the Customs Act may go on and the same shall be completed within a period of eight weeks. Petition disposed off.

Summary

Issues: Concealment of gold in imported goods, seizure of goods, application for early release, confiscation of pallet boxes used for concealment, furnishing of Bank Guarantee, adjudication proceedings under Customs Act.

Concealment of Gold in Imported Goods:
The judgment pertains to the discovery of gold concealed within pallet boxes of imported TVs. The respondents found gold bars hidden in wooden blocks within pallets numbered 8 and 9. The gold bars were marked as 'RAND REFINERY 9999 FINE GOLD 1000g' and were valued at Rs. 1,42,70,000. The officers seized the gold bars along with the LED TV sets used as cover cargo for concealment under the Customs Act, 1962. The detailed process of discovery and seizure was elaborated in the counter affidavit filed by the 1st respondent.

Seizure of Goods and Application for Early Release:
Following the discovery of concealed gold, the petitioner moved an application for the early release of the TV sets in the pallet boxes. The respondents, after examining the situation, agreed to release the remaining 7 pallet boxes excluding boxes 8 and 9 upon the petitioner furnishing a 100% Bank Guarantee for the assessed value of the goods. The judgment directed the petitioner to provide the Bank Guarantee within a week for the release of the specified pallet boxes.

Confiscation of Pallet Boxes and Adjudication Proceedings:
The counter affidavit also mentioned that the pallet boxes used for concealing the gold were liable to be confiscated. The judgment outlined that the adjudication proceedings under the Customs Act would continue, and the remaining issues would be resolved within eight weeks. The petitioner was instructed to comply with the requirement of furnishing the Bank Guarantee to facilitate the release of the pallet boxes as per the terms specified in the order.

In conclusion, the judgment addressed the issues of gold concealment in imported goods, seizure of goods, application for early release, confiscation of pallet boxes, furnishing of Bank Guarantee, and the continuation of adjudication proceedings under the Customs Act. The detailed process of discovery, seizure, and the subsequent directives provided by the court were aimed at resolving the matter and ensuring compliance with customs regulations.