PUSHPAVATI Vs. COLLECTOR OF CUSTOMS AND CENTRAL EXCISE

JUDGEMENT

(1.) INCOME Tax Authorities raided petitioners residential and business premises on 21-5-1988 and seized 55 gold coins and pendants with foreign markings and put it for safe custody in State Bank of India (respondent No. 3 ). Assessee (Petitioner No. 2) offered to disclose the value of the seized property as undisclosed income and paid the tax liability of Rs. 14 lakh or so to secure release of the seized gold. He applied for its release on 8-11-1990 and the Commissioner ordered it on 7-9-1992 subject to certain conditions.

(2.) IT appears that no following action was taken by petitioners in the matter till they again applied to Asstt. Commissioner on 9-6-1993 for the release of the gold and for its handover to Bank Branch Manager on the plea that they wanted to subscribe it for gold-bonds under the Gold Bonds Scheme. The gold was consequently ordered to be released and a Panchnama executed on 14-6-1993 which was signed by petitioner No. 2 also. But before petitioners could take it home, it was seized by the Customs Authorities pursuant whereto respondent No. 1 issued the show cause notice to petitioners asking them why it be not confiscated.

(3.) PETITIONERS feel aggrieved of this and say that Bank was obliged to issue Bonds to them once they had applied for it in the prescribed Form on 14-6-1993 and its default had resulted in the illegal seizure of the gold. Respondent Bank, on its part resists the claim on the ground that it could not issue bonds because petitioners application was not accompanied by tender of any gold in terms of Clause 4 of the Scheme. It is also denied that petitioners were in physical possession of the gold for subscribing gold bonds.