SHABIR AHMED ABDUL REHMAN Vs. UNION OF INDIA

JUDGEMENT

(1.) During the pendency of an appeal filed against the confiscation order, whether the customs authorities could sell the confiscated gold and when it is ultimately held that the petitioner is entitled to redemption of the confiscated gold, whether the sale proceeds could be returned after deducting the customs duty from the sale proceeds, is the question raised in this petition.

(2.) In the present case, on 17/4/1997 the petitioner on his arrival from Muscat was apprehended at the Airport as he was carrying 41 gold bars valued at Rs. 18,88,337/-(international market value) / Rs. 23,16,500/- (local market value) concealed in a pouch. The said gold bars were seized from the petitioner on the reasonable belief that they are liable to be confiscated.

(3.) Thereafter, on completion of investigation, a show cause notice was issued to the petitioner on 3rd July, 1997 and by an Order in original dated 11/11/1997 (despatched on 25/11 /1997) it was ordered that the seized gold bars are liable to be confiscated and penalty of Rs. 3,00,000/- was also imposed.