Prompt Return of Seized Ornaments Ordered in Settlement Case

The Court directed the Department to promptly return the seized ornaments to the petitioner, emphasizing the importance of cooperation between the parties in settling financial matters. The petition was allowed with no costs imposed, highlighting the commitment of the Department to release the ornaments after the petitioner complied with payment requests.

---

---

Issues:
Petition seeking release of seized ornaments under Article 226 of the Constitution of India.

Analysis:
The petitioner, an income-tax assessee, had gold ornaments seized during a search under section 132 of the Income Tax Act, 1961. The petitioner requested release of the ornaments by paying an equivalent amount based on a valuation report. After delays and requests for extension, the petitioner paid the amount on 10th February, 2016. Despite this, the ornaments were not released, leading to the petitioner filing a petition for their release.

The petitioner's counsel argued that the Department should honor its promise to release the ornaments after payment, as per the valuation report. The Department had initially considered auctioning the ornaments but opted for the petitioner to pay the market price instead. The petitioner complied with the payment request, following all procedures and approvals.

In response, the Department claimed a misunderstanding in requesting payment for the ornaments' release. They suggested only returning the amount paid by the petitioner. However, the Court noted that the Department had already valued the ornaments and accepted the payment, indicating a commitment to release the ornaments.

Considering the Circular on the release of seized assets, the Court found that retaining the amount paid by the petitioner while releasing the ornaments would serve the revenue's interest. Auctioning the ornaments may not be a viable option, and releasing them would help recover the petitioner's dues.

The Court directed the Department to return the seized ornaments to the petitioner promptly. It also emphasized the petitioner's cooperation with revenue authorities in settling outstanding dues. The petition was allowed, with no costs imposed, emphasizing the importance of cooperation between the parties in resolving financial matters.

---