Customs Cannot Deny Gold Redemption After Failing to Quantify Duty: Delhi HC

Prikshith Jhaver Vs Commissioner of Customs (High Court Delhi)

Summary: The Delhi High Court directed customs authorities to quantify the duty payable on twelve confiscated gold bars and, after the petitioner pays that duty along with the redemption fine, penalty and interest, release the bars. The Court held that the petitioner’s failure to complete redemption within the stipulated period could not be attributed solely to him when he had requested duty quantification within that period and the authorities had not responded.

The petitioner was intercepted at Indira Gandhi International Airport, New Delhi, while travelling from Delhi to Chennai with twelve gold bars weighing 1,200 grams. An Order-in-Original dated 18 November 2022 confiscated the bars but permitted redemption on payment of applicable duty, a redemption fine of Rs.50,000 and a penalty of Rs.50,000. It did not quantify the duty. On 28 December 2022, within the 120-day redemption period identified by the Court, the petitioner applied for that amount so he could exercise the redemption option. The authorities received the application but did not answer it. Their appeal against the Order-in-Original was dismissed on 3 August 2023, and that decision attained finality. A later refund request, made on the assumption that the bars had been disposed of, was rejected as premature. Before the High Court, the respondents confirmed that they still held the bars.