2025 (2) TMI 967 - HC - Customs

Absolute confiscation of the seized gold - Seeking issuance of an appropriate writ to amend or review the impugned Compounding Order - HELD THAT - In view of the fact that the delay was only due to financial difficulties and also considering the value of the gold seized i.e. about 1688.22 grams and 1664.18 grams the Petitioner is permitted to deposit the amount in terms of the order dated 08th May 2023. Petition disposed off.

Summary

The present case involves a petition filed under Article 226 of the Constitution of India seeking the amendment or review of a Compounding Order passed by the Chief Commissioner of Customs, Delhi Preventive Zone. The impugned order allowed the application of the Petitioner under the Customs Act, 1962, subject to the payment of a compounding amount of Rs. 2,50,000 within 30 days. The background of the case includes the detention of gold from the Petitioner and another individual, leading to the issuance of a show cause notice for confiscation of the seized gold. The impugned order imposed the compounding amount and granted immunity from prosecution, which the Petitioner failed to deposit within the prescribed time, leading to the petition seeking an extension.The main issue considered by the Court was whether to grant an extension of time for the Petitioner to deposit the compounding amount due to financial constraints. The Court heard arguments from both parties regarding the delay in payment and the value of the seized gold. The Petitioner sought an extension citing financial difficulties, while the Respondent opposed the condonation of delay, arguing that the Petitioner had sufficient time to make the payment.The Court referred to a similar case where an extension of time was granted under similar circumstances. The Court noted that the compounding fee was a small fraction of the currency carried by the petitioners and found no fault with the impugned order. Despite the Respondent's objections, the Court considered the financial difficulties faced by the Petitioner and permitted the deposit of the amount within a month. However, the Court made it clear that no further extension of time would be granted.In conclusion, the Court allowed the Petitioner to deposit the compounding amount within a specified period, after which the Order in Original would be deemed to have been complied with. The Court disposed of the petition and any pending applications in these terms, emphasizing that no further extension would be provided.