2006 (11) TMI 9 - SC - Central Excise

Central Excise Release of seized gold 78 gold bar seized on presumption of clandestine import In this 70 bars receive from genuine sources and 8 bars legally not explained property Appeal filed to Tribunal and thereafter High Court Impugned order sustained

Summary

Issues:
1. Confiscation of gold bars under Customs Act.
2. Appeals against the confiscation order.
3. Disposal of appeals by CESTAT.
4. Challenge of CESTAT's order in High Court.
5. High Court's direction to release gold bars.
6. Department's appeal against High Court's order.
7. Tribunal's decision on Department's appeal.
8. Request to set aside Tribunal and High Court orders.

Analysis:
1. The case involved the confiscation of 78 gold bars under the Customs Act based on the presumption of clandestine importation. The Commissioner initially ordered confiscation, which was later challenged and remanded for fresh adjudication by CEGAT.

2. Following the remand, the Commissioner found 70 bars to be from genuine sources but directed the confiscation of the remaining 8 bars due to lack of proper explanation regarding their import legality. Separate appeals were filed by the concerned parties against this decision.

3. CESTAT, in its order, overturned the confiscation of the 8 bars, citing the absence of foreign marks and insufficient evidence of illegal importation. The appeals by the noticees were allowed, leading to the release of the 78 gold bars.

4. The Department challenged CESTAT's decision through a Writ Petition in the High Court, which directed the release of all 78 gold bars. Subsequently, the Department's appeals before CESTAT were dismissed as the High Court had already ordered the release of the gold bars.

5. The Department filed special leave petitions against the High Court and CESTAT orders, arguing that the appeals were not heard together, causing the Department's appeals to be overlooked. However, the High Court had previously ruled that such linkage was necessary to be brought to the Tribunal's attention by the concerned party.

6. The Supreme Court, while acknowledging the Department's concerns, refused to set aside the Tribunal and High Court orders. It emphasized that the matter had been settled in favor of the noticees after multiple authorities ruled in their favor over the years. The Court directed the Department to release all 78 gold bars to the respondents promptly.