2023 (11) TMI 1089 - HC - Customs

Redemption for the purpose of Re-export - Absolute Confiscation - Gold bars - goods are not available for redemption and re-export as the Customs Authority already disposed off the gold bars - HELD THAT - It is admitted that before this order came to be passed on 30.11.2018 in Ext.P10, the Customs has already disposed of seized two gold bars of the petitioner. Therefore, the direction issued by the Principal Commissioner in Ext.P10 order for redemption for the purpose of re-export the gold on payment of redemption fine of Rs.25,00,000/- and reduced penalty of Rs.8,00,000/- are impossible to comply with inasmuch as the goods are not available for redemption and re-export. This fact of disposal of the two gold bars by the Customs Authority was not before the Principal Commissioner Ex-Officio, Additional Secretary to Government of India, the Revisional Authority and therefore, the order impugned came to be passed. This is an important fact which must be brought to the notice of the Revisional Authority for passing a fresh order in accordance with law. Therefore, the present writ petition is allowed, impugned order is set aside and the matter is remitted back to the file of the Revisional Authority/ 1st respondent to pass a fresh order after taking note of the fact that the two gold bars of two kilograms(one kilogram each) which were seized from the possession of the petitioner had already been disposed of before Ext.P10 order came to be passed. Petition allowed by way of remand.

Summary

Issues involved:
The judgment involves the impugning of an order passed by the Principal Commissioner & Ex-Officio, Additional Secretary to Government of India regarding the confiscation and penalty imposed for smuggling of gold bars.

Confiscation of gold bars:
The petitioner was apprehended with two gold bars of one kilogram each concealed in sealed pockets. The gold bars were seized and an order was passed confiscating the gold bars under various sections of the Customs Act, 1962. Additionally, a penalty of Rs.10,00,000 was imposed on the petitioner for smuggling the gold bars. The order in original was challenged before the Commissioner of Appeals and subsequently, a revision was filed before the Principal Commissioner & Ex-Officio, Additional Secretary to Government of India.

Decision and subsequent issues:
The Principal Commissioner, in the impugned order, set aside the previous orders and allowed the petitioner to redeem the gold bars for re-export on payment of a redemption fine of Rs.25,00,000 and reduced the penalty to Rs.8,00,000. However, it was later discovered that the Customs had already disposed of the seized gold bars before the impugned order was passed. This crucial fact was not brought to the attention of the Principal Commissioner, leading to the passing of the impugned order.

Court's direction:
The Court allowed the writ petition, set aside the impugned order, and remitted the matter back to the Revisional Authority to pass a fresh order considering the fact that the gold bars had already been disposed of. The Revisional Authority was directed to issue notices to the petitioner and other relevant parties for a fresh hearing. The Court emphasized the need for expeditious resolution of the matter, preferably within three months, due to the age of the case and the seizure of the gold bars dating back to 2013.