2006 (10) TMI 168 - HC - Customs

Summary

Issues involved:
The issues involved in the judgment are the confiscation of silver ingots by customs authorities, the imposition of penalty, and the application of liberalization policy on importation of gold and silver.

Confiscation of Silver Ingots:
The petitioner's residential premises were searched, and silver ingots of foreign origin were seized. The petitioner produced baggage receipts to justify possession, but the ingots did not match the description in the receipts. The authorities seized the ingots on the belief of smuggling and passed an order of total confiscation along with a penalty. The first respondent confirmed the confiscation but reduced the penalty. The petitioner challenged the order through a writ petition.

Application of Liberalization Policy:
The petitioner's counsel cited judgments from various Tribunals to argue that the liberalization policy on importation of gold and silver should apply in this case. The counsel contended that since the petitioner was found in possession of the ingots in 1993, the same treatment as in previous cases should be given. The liberalization policy had been in effect from 1992-93 onwards.

Disposition of the Writ Petition:
After hearing both sides and considering the disputed facts, the judge decided to direct the respondents to consider imposing a redemption fine in lieu of total confiscation if the silver ingots seized from the petitioner were still available. The judgment referenced a similar case from the Kolkata Tribunal and emphasized the need to follow the Central Government's policy on liberalization of importation of silver and gold ingots. The writ petition was disposed of with the above directions, and no costs were awarded.