K.N. THIAGARAJAN Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) Heard Mr. S. Renganathan, learned counsel appearing for the petitioner and Mr. B. Vijaykarthikeyan learned Senior Standing Counsel for the respondents. The prayer in the writ petition is for issuance of Writ of Mandamus, to direct the respondents 1 and 5 for payment of interest at the rate of 9% in respect of sale value of the gold which was sold by the Customs Department pursuant to the order of absolute confiscation which was passed.

(2.) The Commissioner of Customs by order dated 15-11-1999 ordered for absolute confiscation of the 40 gold bars of foreign origin weighing about 4665.65 gms, valued at Rs. 20,60,000/- under Sections 111(d) and (e) of the Customs Act (hereinafter referred to as 'the Act') and the confiscated car bearing Regn. No. TN-72-A-3004 under Section 115(2) of the Act with an option for redemption against payment of fine of Rs. 1,00,000/- under Section 125 of the Act and penalty of Rs. 5,00,000/- was imposed on the petitioner under Section 112(a) of the Act.

(3.) The petitioner challenged the order of confiscation and imposition of fine and penalty on various grounds before the Customs, Excise & Gold (Control) Appellate Tribunal. The Tribunal by order dated 12-1-2007 disposed of the appeal with an option to redeem the car on payment of Rs. 20,000/- and reduced penalty to a sum of Rs. 3,00,000/- which was directed to be paid along with a fine determined by the Commissioner of Customs in respect of the gold bars at the time of redemption. After the order was passed by the Tribunal, the Department filed a miscellaneous petition for rectification of mistake in Miscellaneous Petition No. 23 of 2007. It was contended before the Tribunal that 39 out of 40 gold bars were disposed of by the Department by auction sale in June, 2000 and an amount of Rs. 20,16,734/- was realized after payment of Sales Tax. Further, it was stated that the car was also disposed of during December, 2001 for an amount of Rs. 62,500/- and therefore, the Department sought rectification of the final order passed by the Tribunal dated 12-1-2007. While considering the said miscellaneous petition for rectification, the Tribunal while passing the stay order dated 11-5-2000, noted the sale of gold bars by the Department and the Tribunal was satisfied that the final order passed on an erroneous premise that the gold bars and the car were still in the Department is incorrect and therefore, the order has to be revised. Accordingly, final order was modified by order dated 9-5-2007 2007 216 ELT 155 . The operative portion of the order passed by the Tribunal reads as follows:--