2023 (12) TMI 266 - HC - Customs

Permission to redeem the confiscated gold subject to payment of redemption fine - HELD THAT - The Impugned Order proceeds on the premise that gold as a commodity would not fall within the ambit of prohibited goods as defined under Section 2(33) of the Customs Act, 1962. Dealing with an identical question, a Division Bench of this Court in NIDHI KAPOOR, SUPRIYA, SUDHA MURTHY, MR. JASMEET SINGH CHADHA AND MS. SHANAZ MALIK VERSUS PRINCIPAL COMMISSIONER AND ADDITIONAL SECRETARY TO THE GOVERNMENT OF INDIA ORS., JT COMMISSIONER OF CUSTOMS, IGI AIRPORT T-3 DELHI, COMMISSIONER OF CUSTOMS, IGI AIRPORT, NEW DELHI, UNION OF INDIA 2023 (8) TMI 1008 - DELHI HIGH COURT had held that It is the FTP formulated in terms of Section 5 of the FTDR which makes the import of gold subject to RBI regulation. This stipulation thus clearly evidences the intent of the Union Government to confer RBI with the authority to formulate regulatory provisions in relation to the import of gold. Since this power stands bestowed upon the RBI by the Union Government and forms an integral part of the FTP itself, one need not look for or undertake an expedition to discern a power independently vested in the RBI to issue appropriate directives and circulars regulating the import of gold. In view of the conclusions as recorded in Nidhi Kapoor, the order impugned cannot be sustained - petition allowed.

Summary

Issues:
The validity of the order permitting redemption of confiscated gold subject to payment of redemption fine.

Summary:
The Commissioner of Customs challenged the order allowing the redemption of confiscated gold by the Revisional Authority. The order was based on the premise that gold does not fall under "prohibited goods" as per Section 2(33) of the Customs Act, 1962. Referring to the case of Nidhi Kapoor v. Principal Commissioner and Additional Secretary to the Government of India & Ors., the court highlighted that goods imported in violation of import conditions also fall under the definition of "prohibited goods." The court emphasized that prohibitions could be absolute or subject to restrictions or regulations, and imports violating such conditions would be considered prohibited goods. The court also noted that restrictions on the import of gold were established in the Foreign Trade Policy (FTP) and the Import-Export Policy (ITC), making it subject to RBI regulatory control. Consequently, the court set aside the order of the Revisional Authority based on the conclusions drawn in the Nidhi Kapoor case.