2018 (12) TMI 1368 - HC - Customs

Smuggling - 24 ct. gold unfinished rings - Baggage Rules - prohibited goods - Held that - It is only the release of the seized goods ordered whereas, the proceedings under Section 124 had to go on. Admittedly, the authorities have not proceeded with the enquiry in this regard. In the event, the respondent is found guilty, it is always open to the authorities to proceed in the manner known to law. Though in the writ petition quashing of the seizure order was sought, the learned single Judge, has only directed the return of the gold seized. It is for the Department to proceed with the show cause notice and any reply filed by the respondent to be considered. It is for the Department to proceed with the show cause notice and any reply filed by the respondent to be considered. When it is open to the authorities to proceed in the manner known to law, the appeal filed by them is unwarranted - appeal dismissed.

Summary

Issues:
1. Quashing of seizure order of gold rings
2. Duty payment for seized items
3. Violation of Baggage Rules, 2016
4. Applicability of Customs Act, 1962
5. Distinction based on duration of stay abroad
6. Allegation of smuggling due to declaration
7. Legal precedent on release of prohibited items
8. Proceeding under Section 124 of Customs Act

Analysis:
1. The writ appeal challenged the order quashing the seizure of two gold rings by the third appellant. The respondent sought the return of the rings covered by the seizure order.
2. The learned single Judge directed the respondent to deposit 50% of the duty for the seized items, following a previous order. The appeal was filed against this directive.
3. The appellants argued that the respondent, who stayed overseas for less than six months, was not entitled to carry 66.700 gms of gold. They alleged smuggling of unfinished gold rings and violation of Baggage Rules, 2016.
4. The counsel contended that the respondent exceeded the allowance for jewellery under Baggage Rules, 2016. The respondent attempted to exit through the green channel, meant for passengers with no dutiable items.
5. The single Judge's order required payment of 50% duty for release of seized items, with a provision for further action under Section 124 of the Customs Act, 1962. Non-compliance with the order was noted.
6. The appellants distinguished a previous case based on the duration of stay abroad and the nature of items carried. Allegations of smuggling were raised due to a declaration made by the respondent.
7. Reference was made to a Kerala High Court decision stating that gold, as a prohibited item, cannot be released on payment if carried for someone else. The legal precedent was cited to support this argument.
8. The respondent's counsel emphasized that the order only directed the return of seized goods, while proceedings under Section 124 were to continue. The authorities were urged to proceed with the enquiry as per law, indicating that the appeal was unwarranted and dismissed.