2016 (10) TMI 297 - HC - Customs

Implementation of order passed by Commissioner of Customs (Appeals) dated 30.06.2015 - redemption fine imposed ₹ 2,50,000/-, subsequently reduced to ₹ 1,50,000/- confiscation of gold from a Indian citizen - assorted gold jewellery - no stay obtained by the Department to implement the order - Held that - as on date there is no order of stay granted by the Revisional Authority. Therefore, the Department bound to implement the order passed by the first respondent. However, the Court inclined to grant some time to the Department to move an application for stay before the Revisional Authority, if they so desire. The Department granted 45 days time to move a stay application before the Revisional Authority and if they fail to secure any stay or appropriate interim orders, on the expiry of the 45th day, the respondents shall release the gold subject to the petitioner paying the redemption fine of ₹ 1,50,000/- and such release shall be only for re-export and not for clearance. The petitioner shall also file a bond securing the interest of Revenue, in the event they succeed before the Revisional Authority. - petition allowed - decided in favor of Department on fulfilling specified requirements.

Summary

Issues:
1. Implementation of order passed by the first respondent dated 30.06.2015.
2. Reduction of redemption for re-export from ? 2,50,000/- to ? 1,50,000/-.
3. Maintainability of Revision Application by the respondent Department.
4. Lack of stay granted by the Revisional Authority.
5. Granting time to the Customs Department to move for stay before the Revisional Authority.

Analysis:
The petitioner sought a writ of mandamus to direct the respondents to implement the order passed on 30.06.2015. The petitioner, holding an Indian Passport, failed to declare 410 gms of assorted gold jewellery upon arrival at Chennai Airport from Dubai. A show cause notice was issued, resulting in an order of confiscation with an option of redemption, subject to conditions. Both the petitioner and the Revenue appealed, leading to the Commissioner of Customs (Appeals) reducing the redemption for re-export from ? 2,50,000/- to ? 1,50,000/- for the petitioner, while upholding the penalty imposed. The Revenue's appeal was rejected.

The respondent Department filed a Revision Application against the Commissioner of Customs (Appeals) order, leading to a show cause notice issued to the petitioner. The petitioner contended that the Revision Application was not maintainable as no stay was obtained, seeking the release of the gold bars. The respondents confirmed filing a revision petition before the Joint Secretary (Revision Application), Ministry of Finance, Department of Revenue, New Delhi, with no stay granted by the Revisional Authority as of the current date.

The Court noted the absence of a stay order by the Revisional Authority and granted the Customs Department 45 days to apply for a stay. In case of failure to secure a stay or interim orders within the stipulated time, the respondents were directed to release the gold for re-export upon the petitioner paying the redemption fine of ? 1,50,000/- and filing a bond securing the Revenue's interest. The writ petition was allowed on these terms, with no costs incurred, and the connected miscellaneous petition was closed.