2019 (11) TMI 1018 - HC - Customs

Direction to Customs Authorities to clear its two consignments of gold granules imported - SCN not issued till date - HELD THAT - Without a SCN being issued with regard to the confiscation of the goods or for redemption thereof on payment of fine, the interests of the Revenue may not be jeopardized at all. In that view of the matter, there are no grounds to impose any conditions upon the petitioner firm for undertaking re-export of the gold granules which are now under seizure. The respondent authorities are directed to release the consignments of gold granules which were imported by the petitioner firm - petition allowed.

Summary

Issues:
Prayer to direct Customs Authorities to clear imported gold consignments, Amendment of prayer to re-export seized gold granules, Safeguards to protect Revenue interests, Show cause notice issuance, Imposition of conditions for re-export, Release of seized consignments for re-export.

Prayer to Direct Customs Authorities to Clear Imported Gold Consignments:
The petitioner initially sought a direction for Customs Authorities to clear its two imported gold granule consignments. Subsequently, the petitioner filed an application seeking permission to re-export the seized gold granules instead of clearance.

Amendment of Prayer to Re-Export Seized Gold Granules:
The petitioner firm filed an application to amend the prayer in the writ petition to allow re-export of the gold granules seized by Customs Authorities. The Commissioner highlighted the need for safeguards to protect Revenue interests during the re-export process.

Safeguards to Protect Revenue Interests:
The Commissioner of Customs emphasized the necessity for the petitioner to provide safeguards ensuring the protection of Revenue interests that may arise post-investigation. The Counsel for Customs Authorities was questioned regarding the potential Revenue interests and safeguards required.

Show Cause Notice Issuance:
The Counsel for Customs Authorities admitted that no show cause notice had been issued concerning the confiscated gold granules. The Court opined that without a show cause notice regarding confiscation or redemption of the goods, Revenue interests would not be jeopardized.

Imposition of Conditions for Re-Export:
Considering the absence of a show cause notice, the Court found no grounds to impose conditions on the petitioner firm for re-exporting the seized gold granules. Consequently, the Court allowed the petitioner's application to re-export the gold granules and directed the authorities to release the consignments for re-export.

Release of Seized Consignments for Re-Export:
The Court allowed the petitioner's application, directing the respondent authorities to release the imported gold granule consignments for re-export. The writ petition was allowed, and pending miscellaneous petitions were closed with no order as to costs.