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Issues:
1. Seizure of gold by respondents from petitioner. 2. Dispute over payment of Customs duty on the gold. 3. Applicability of Sections 110, 111, and 112 of the Customs Act. 4. Release of seized gold in lieu of confiscation. 5. Timeframe for completion of adjudication proceedings. Analysis: 1. The petitioner claimed that gold purchased from a bank was seized by the respondents in Calcutta. The respondents alleged unauthorized importation and non-payment of Customs duty on the gold, questioning the authenticity of the seized gold compared to the one bought from the bank. 2. The arguments revolved around Sections 110, 111, and 112 of the Customs Act, emphasizing that gold importation into India is not prohibited. The main issue was the petitioner's liability to pay Customs duty and any potential penalties under Section 112, pending adjudication proceedings by the respondents. 3. The respondents agreed to complete adjudication proceedings within three months, estimating the duty on the seized gold at Rs. 3,26,560. They also mentioned the possibility of a penalty up to 5 times the duty amount as per Section 125 of the Customs Act. 4. The judgment acknowledged Section 125's provision for releasing gold upon payment of duty and penalty if applicable. The court directed the release of seized gold upon payment of duty, submission of a Bank Guarantee, and a bond to cover potential penalties, ensuring the respondents' interests are safeguarded. 5. The court set a deadline for completing adjudication proceedings within three months, with provisions for refund and discharge of obligations if the deadline is not met. The petitioner was required to cooperate in the proceedings, with consequences for non-cooperation, including possible ex parte proceedings by the respondents. This comprehensive analysis of the judgment highlights the key issues, legal arguments, and the court's directives regarding the seizure of gold, Customs duty payment, and the process for adjudication and release of the seized gold.
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