2018 (6) TMI 1373 - AT - Customs

Principles of Harmonious Construction - return of seized goods - case of appellant is that 324 kgs. of silver ornaments, cash of ₹ 994.70 and two packets of Bahi Khata seized from Shri Bhagwati Prasad were not handed over to Shri Bhagwati Prasad on 05.10.1974, which is now sought to be refunded - Held that - Though there was an order in the said Order-in-Original dated 06.03.1978 for release of silver ornaments, gold ornaments, Indian currency and Bahi Khatas to Shri Bhagwati Prasad, the said Order-in-Original dated 06.03.1978 made a clear mention of facts stated on page 2 under para 2 that 324 kgs. of silver ornaments, Indian currency and Bahi Khatas were returned to Shri Bhagwati Prasad - Further the said show cause notice dated 26.03.1975 did not have any proceedings related to silver. Following Principles of Harmonious Construction, it is reasonable to conclude that 324 kgs. of silver ornaments, Indian currency and Bahi Khatas were returned to Shri Bhagwati Prasad on 05.10.1974 - appeal dismissed - decided against appellant.

Summary

Issues:
Appeal arising from Order-in-Appeal No.04-06/CUS/Alld/2016 dated 13.01.2016 passed by Commissioner(Appeals), Customs, Central Excise & Service Tax, Allahabad.

Analysis:
The case involved a seizure of gold ornaments, silver ornaments, Indian currency, and books of accounts from the premises of an individual. The individual was issued show cause notices under the Gold Control Act, 1968. The Order-in-Original dated 06.03.1978 by the Assistant Collector held that no contravention was proven against the individual. Subsequently, the matter was taken to the Hon'ble Allahabad High Court, which directed the Competent Authority to review and decide on the disputed articles. In compliance with this order, the Deputy Commissioner of Customs passed an Order-in-Original in 2014, releasing certain items to the individual's legal heirs. The appellants challenged this order before the Commissioner(Appeals), arguing that certain items were not returned as claimed. The Commissioner(Appeals) upheld the Order-in-Original, stating that the items were indeed returned. The appellant then appealed to the Tribunal.

The appellant contended that the department had no acknowledgment of the return of certain items, contrary to the original authority's order. The Revenue argued that the Order-in-Original clearly mentioned the return of the items. After considering the arguments and reviewing the relevant documents, the Tribunal found that the Order-in-Original did mention the return of the items, including silver ornaments, Indian currency, and books of accounts. The show cause notice did not have any proceedings related to silver, leading to the conclusion that the items were returned. Applying the Principles of Harmonious Construction, the Tribunal upheld the impugned Order-in-Appeal and dismissed the appeal.

In conclusion, the Tribunal found no infirmity in the impugned Order-in-Appeal, as it was reasonable to conclude that the items were returned to the individual based on the Order-in-Original and the lack of proceedings related to silver in the show cause notice. The appeal was dismissed, and the decision was pronounced in court.