Retention of gold and currency unjustified as two authorities concurrently orders release

Maneesha J.S Vs Commissioner of Customs (Kerala High Court)

Kerala High Court held that as two authorities have concurrently held in favour of the petitioner and ordered release of the Gold and Currency, the same cannot be retained. Accordingly, confiscated gold and cash directed to be released.

Facts- On the basis of inputs given by the Intelligence Wing, the officials of Customs Preventive, Kochi searched the house of Sri.Raju Sawasthan, in pursuance to the search warrant issued by the Assistant Commissioner of Customs, and recovered 2253.9 grams of Gold of 24 karat purity and Indian currency amounting Rs.27,00,000/-. The said Gold and currency were seized, and the order in original was rendered, in favour of the petitioner and the seized Gold and currency were allowed to be released.

On the basis of the said order, the petitioner moved an application for release of the Gold and currency. However, the same was not released, in view of the fact that the Department had filed appeal against the said order in original. The Commissioner (Appeals), appellate authority, allowed the appeal in part vide order, and redemption of the confiscated goods u/s. 125 of the Customs Act, on a redemption fine of Rs.4,00,000/-, was ordered.

Conclusion- Held that two authorities have concurrently held in favour of the petitioner and since there is no interim order passed by the CESTAT in favour of the Department against release of the Gold and currency (cash) seized, except redemption fine of Rs.4,00,000/- (Rupees four lakhs only), I find it appropriate to dispose of the present writ petition directing the respondents to release the confiscated Gold and cash of Rs.23,00,000/- (Rupees twenty three lakhs only) to the petitioner, on the petitioner furnishing bond for the value of the same.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

The present writ petition has been filed with the following reliefs:

“i. Issue a writ in the nature of mandamus or any other appropriate writ, order or direction directing the respondent to comply with Ext.P9 order by releasing the gold and currency to petitioner;

ii. Issue a writ in the nature of mandamus or any other appropriate writ, order or direction directing the second respondent to hear the appeal and dispose the same in a time bound manner; and

iii. Grant such other reliefs that this Hon’ble Court may deem fit and proper in the facts and circumstances of the case.”

2. On the basis of inputs given by the Intelligence Wing, the officials of Customs Preventive, Kochi searched the house of Sri. Raju Sawasthan @ Raju Sait, 13/491, “Yasodha Nivas”, hathakudam Road, P.O.Vallachira, Thrissur – 680 562, in pursuance to the search warrant issued by the Assistant Commissioner of Customs, and recovered 2253.9 grams of Gold of 24 karat purity and Indian currency amounting Rs.27,00,000/-. The said Gold and currency were seized, and the order in original was rendered vide Ext.P6 dated 23.11.2021, in favour of the petitioner and the seized Gold and currency were allowed to be released. On the basis of the said order, the petitioner moved an application for release of the Gold and currency. However, the same was not released, in view of the fact that the Department ad filed appeal against the said order in original. The Commissioner (Appeals), appellate authority, allowed the appeal in part vide order, Ext.P9, dated 15.7.2022 and redemption of the confiscated goods under Section 125 of the Customs Act, on a redemption fine of Rs.4,00,000/-, was ordered. However, penalty was abated in respect of Sri. Raju Sait, who had passed away. Ext.P9 order passed by the Commissioner (Appeals) has been taken up in further appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). Learned counsel for the petitioner submits that when two authorities have concurrently held in favour of the petitioner and ordered release of the Gold and currency, the same cannot be retained. It is submitted that the petitioner is willing to furnish sufficient bonds for release of the Gold and currency.

3. In view of the fact that two authorities have concurrently held in favour of the petitioner and since there is no interim order passed by the CESTAT in favour of the Department against release of the Gold and currency (cash) seized, except redemption fine of Rs.4,00,000/- (Rupees four lakhs only), I find it appropriate to dispose of the present writ petition directing the respondents to release the confiscated Gold and cash of Rs.23,00,000/- (Rupees twenty three lakhs only) to the petitioner, on the petitioner furnishing bond for the value of the same. The said release of the Gold and currency seized, would be subject to the final outcome of the appeal pending before the CESTAT.

Pending interlocutory application, if any, in the writ petition stands dismissed.