Confiscation of 699.310 Grams of Gold Valued at Rs. 27.90 Lakh: Gauhati HC Rules Customs Appeal Not Maintainable as Value Below Rs. 1 Crore [Read Order]
The Court relied on its earlier rulings and held that appeals in such cases violated the Ministry of Finance’s circular and notification, leading to dismissal of the appeal.
Gold-confiscated-taxscan
Gold-confiscated-taxscan
The HIgh Court of Gauhati, in a case involving the confiscation of 699.310 grams of gold valued at Rs. 27.90 lakh, ruled that the Customs Department’s appeal was not maintainable as the value involved was below Rs. 1 crore.
The Revenue appellant challenged the order dated 15.01.2025 of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT)in Customs Appeal No. 75449/2023. The appeal involved Shri Prahlad Kumar Das, respondent-assessee, whose gold had been seized, confiscated, and on which a penalty of Rs. 2.8 lakh had been imposed.
The Tribunal found that there was no evidence proving the gold was of foreign origin or smuggled into India. It noted the absence of foreign markings and that the gold’s purity, 99.30 percent and 99.39 percent, did not meet the conditions under Section 110 of the Customs Act for confiscation. The Tribunal therefore directed the release of the gold and set aside the penalty.
Master the Latest Amendments in Income Tax Act Click here
The case involved the seizure of 699.310 grams of gold, valued at around Rs. 27,90,247, at Guwahati Railway Station. The gold was initially seized by the Railway Protection Force personnel and later handed over to the Customs authorities for further action.
The appellant counsel submitted that the Standing Instruction dated 22.08.2019, which barred the Customs Department from filing appeals in the High Court for cases under Rs. 1 crore, did not apply to gold smuggling cases. He referred to the Meghalaya High Court decision in Commissioner of Customs (Preventive) vs. Daleep Kumar Verma, which held that the monetary limit did not cover smuggling cases involving confiscation and fines.
The respondent counsel submitted that the seized gold was valued at around Rs. 27,90,247, so the appellant could not file an appeal in the High Court under its policy. She relied on the Division Bench decision in Cus.Ref.3/2024 (Commissioner of Customs (Preventive) vs. Sahib Jain), decided on 19.02.2025.
Justice Michael Zothankhuma and Justice Mitali Thakuria heard the counsels for both parties. It observed that, according to the Meghalaya High Court, gold smuggling cases with a value under Rs. 1 crore were not covered by the Ministry of Finance notification allowing the Customs Department to file appeals in High Courts.
However, the Division Bench of this Court, following the Allahabad High Court’s decision in Customs Appeal No. 1/2022, had consistently held that appeals by the Customs Department regarding alleged gold smuggling were not maintainable if the value involved was Rs. 1 crore or less.
Since the present case involved gold valued at around Rs. 27,90,247, the bench applied its previous decision in Cus.Ref. 3/2024 and related cases. The appeal was therefore found to be in violation of the circular and notification and was dismissed.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
