Case Law Details
Sree Venkateshwara Bullion Vs Principal Commissioner of Customs (CESTAT Chennai)
Introduction: A recent decision by CESTAT Chennai highlights the allowance of provisional release of seized gold in the case of Sree Venkateshwara Bullion. The tribunal considered the balance of convenience, ongoing adjudication proceedings, and the directions of the Hon’ble High Court in determining the release of the gold. This article provides a detailed analysis of the case, outlining the contentions of the appellant, the impugned order, and the tribunal’s decision.
Detailed Analysis: Sree Venkateshwara Bullion, engaged in the local trade of gold and silver, faced a search and seizure operation by DRI officers. The seized gold was claimed to be duly accounted for, and the appellant requested its provisional release. The Principal Commissioner of Customs rejected the request, citing the alleged diversion of imported gold to the local market by suppliers, making the seized goods ‘prohibited goods’ under Section 2(33) of the Customs Act.
The appellant approached the Hon’ble High Court, resulting in a direction to the lower authority to reconsider the release request. The Principal Commissioner reiterated the denial, expressing concerns that provisional release might defeat the purpose of absolute confiscation and permit prohibited goods into the domestic market.
In response, the appellant argued that the gold was accounted for, and adjudication proceedings were ongoing with an interim stay order from the High Court. They referenced a Delhi High Court judgment, Additional Director General (Adjudication) vs. Its My Name Pvt. Ltd., emphasizing that the possibility of later confiscation should not be a ground for refusing provisional release.
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