The Madras High Court has recently allowed a Non-Resident Indian to release the gold seized by the customs department for non-declaration holding that the same can be released as per section 125 of the Customs Act, 1962.
The petitioner, a NRI working in Singapore travelled to India after five and half years and carried 150 grams of gold with him for a wedding in the family. On his arrival, he had declared before the Trichy Airport Custom Officers about the possession of three gold bangles, totally weighing 150 grams. The Customs Officers without accepting the same, had taken the petitioner’s passport and made him to wait for more than three hours on the same day in the Airport.
The Court further relied on the decision in Vaibhav Sampat More vs. National Investigation Agency, through its Chief Investigation Officer wherein it was held that import of gold is not prohibited, but restricted subject to prescribed quantity on payment of duty.
“Thus, import of gold is not prohibited, but restricted subject to prescribed quantity on payment of duty,” the Court observed.
Noting that there is no concealment of gold in a baggage or body, and there is no smuggling and the gold, being seized for non-declaration, Justice M Nirmal Kumar observed that “Section 125 of the Customs Act, 1962, gives rights to the owner or from whom the goods have been seized to redeem such goods on payment of fine. Further, this Court consistently held that goods can be handed over on executing 50% of the Bank guarantee on the duty amount. In view of the same, this Court directs the petitioner to execute 50% of the Bank guarantee in lieu of customs duty and on execution of the Bank guarantee, the respondents are directed to hand over the gold bangles to the petitioner within two weeks from thereon. It is for the respondents to proceed with the adjudication proceedings to save the revenue to the Nation. The adjudication proceedings shall be completed within a period of three months from the date of receipt of a copy of this order.”
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