Jurassic Refiners & Jewels Private Ltd Vs Assistant Commissioner of Customs (Madras High Court)
The Madras High Court has allowed the petition filed by Jurassic Refiners & Jewels Private Ltd., a gold jewellery exporter, quashing criminal proceedings initiated against the company under the Customs Act, 1962, and the Indian Penal Code (IPC). The prosecution involved various offences under Sections 132, 135(1)(a) to (d) of the Customs Act (relating to false declaration and duty evasion) read with Section 120B of IPC (criminal conspiracy). The court’s decision was based on the fact that the primary allegation of customs duty evasion, which formed the entire basis of the criminal complaint, had been found legally and factually unsustainable in previous adjudication and appellate proceedings.
Background and Prior Adjudication
The core issue originated from an investigation by the Directorate of Revenue Intelligence (DRI), Hyderabad, which alleged that the petitioner wrongly utilized the duty-free gold replenishment scheme under the Foreign Trade Policy. The DRI claimed the company obtained duty-free gold bars from nominated agencies like Diamond India Ltd. against the export of jewellery by resorting to mis-declaration and improper value addition, thereby evading applicable customs duty.
Following the investigation, a Show-Cause Notice was issued, which led to an adjudication order confirming the duty demand. The company challenged this order before the CESTAT, Hyderabad, which, by an order dated February 8, 2024, allowed the appeal and set aside the order of the adjudicating authority.
