2022 (9) TMI 918 - HC - Customs

Seeking issuance of writ of mandamus - release of Seized articles - Gold Jewellery weighing 2294.840 gm - onus to get the review application listed before the Allahabad High Court - Jurisdiction of Customs Department - HELD THAT - The Tribunal has reversed the order of the Commissioner of Customs (Appeals), on the ground that the Customs department was not invested with requisite jurisdiction, albeit, within the Special Economic Zone established under SEZ Scheme framed by the Ministry of Commerce, Government of India - It is on this score, that the Tribunal concluded that the proceedings initiated against the petitioner were beyond the jurisdiction of the Customs department. In order to secure the interests of the respondents/revenue, the petitioner is directed to furnish a personal bond - Petition disposed off.

Summary

Issues:
1. Compliance with a final order of the Customs, Excise and Service Tax Appellate Tribunal regarding the return of seized gold jewelry.
2. Jurisdictional issue related to the proceedings initiated by the Customs department within a Special Economic Zone.

Analysis:
Issue 1:
The petitioner sought compliance with a final order dated 16.11.2016 passed by the Customs, Excise and Service Tax Appellate Tribunal, directing the respondent to return the seized gold jewelry. The High Court noted that the respondents had preferred an appeal before the Allahabad High Court against the Tribunal's order. However, the appeal was dismissed due to the tax effect being below the prescribed limit, and a review application remained pending without being listed for adjudication. The High Court held that the onus to list the review application fell on the respondents, who failed to take necessary steps despite opportunities granted. The Court directed the respondents to comply with the Tribunal's order, with the petitioner required to furnish a personal bond for the release of the gold jewelry.

Issue 2:
The Tribunal had reversed the order of the Commissioner of Customs (Appeals) on the grounds that the Customs department lacked jurisdiction within the Special Economic Zone. The Tribunal found that the proceedings initiated against the petitioner were beyond the Customs department's jurisdiction within the SEZ established under the SEZ Scheme. Consequently, the Tribunal set aside the impugned order and allowed the appeal, providing consequential relief to the appellant. The High Court upheld the Tribunal's decision, directing the respondents to comply with the Tribunal's order and release the seized gold jewelry to the petitioner upon the furnishing of a personal bond. The Court emphasized the importance of securing the interests of the revenue department and set a timeline for the release of the gold jewelry once the bond was furnished by the petitioner. The writ petition was disposed of accordingly, with parties instructed to act based on the digitally signed copy of the judgment.