The Kerala High Court has ruled in favour of the assessees, in a customs case where the gold seized were not released despite favorable ruling in the order-in-original.
The Single Bench of Kerala High Court, headed by Justice Dinesh Kumar Singh, decided the issue in favor of petitioners seeking the release of seized gold and gold items, dismissing the Customs Department’s refusal to release the confiscated assets.
There were writ petitions filed by individuals seeking the release of their seized gold and gold items after favorable orders were issued in the original proceedings. The release is conditioned upon the petitioners furnishing bonds and securities, excluding the requirement for bank guarantees.
In similar cases, the Kerala High Court, considering the submissions from both parties, had directed the Customs Department to release the seized gold within three weeks if the Department fails to obtain an interim order in their favor from the appeals filed against the adjudicatory orders.
The Customs Authority, represented by the learned Counsel, argued that they were filing appeals against the adjudicatory orders and, therefore, could not release the seized goods until the appeals were resolved.
The petitioner’s Counsel countered, citing precedents from the Supreme Court and various High Courts, emphasizing that the mere filing of appeals does not justify withholding the release of seized goods.
In compliance with the interim orders, petitioners have executed bonds and furnished securities (other than bank guarantees) to the satisfaction of the Customs Authority. The release process for the seized gold and gold items is underway, the counsel for revenue submitted.
The court disposed of the writ petitions, specifying that the gold and gold items seized from the petitioners should be released after the orders-in-original have been passed in their favor. The release is subject to petitioners’ fulfillment of conditions, including the provision of securities (excluding bank guarantees) and execution of bonds.
The Single Bench of the Kerala High Court also clarified that the release is contingent upon the outcome of any appeal filed by the Customs Department against the original orders.
The court’s emphasis on a time-bound release and acceptance of alternative securities sets a notable standard for similar cases in the future.
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