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        Case ID :

        2016 (9) TMI 122 - AT - Customs

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        Redemption of confiscated gold remains available where confiscation order permits fine payment and no time limit is fixed. An order of confiscation under the Gold (Control) Act that grants redemption on payment of fine can be complied with even while related proceedings remain ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Redemption of confiscated gold remains available where confiscation order permits fine payment and no time limit is fixed.

                                An order of confiscation under the Gold (Control) Act that grants redemption on payment of fine can be complied with even while related proceedings remain pending, where no time limit is prescribed for exercising the option. Pendency of an appeal does not defeat the right to redeem confiscated goods, and once the redemption fine is tendered there is no legal bar to release of the goods. An objection that the challenge to the departmental communication was not maintainable was rejected because the grievance stemmed from the Assistant Commissioner's order. The refusal to release the gold was therefore set aside and release was directed on confirmation of payment.




                                Issues: Whether the appellant could validly exercise the option to redeem confiscated gold and obtain release of the goods notwithstanding the pendency or alleged non-maintainability of earlier proceedings.

                                Analysis: The order of confiscation under the Gold (Control) Act, 1968 had granted an option to redeem the goods on payment of fine and did not prescribe any time limit for exercising that option. The pendency of an appeal did not extinguish or defer the appellant's entitlement to comply with the confiscation order. Once the redemption fine was tendered, there remained no legal bar to completion of redemption and release of the confiscated gold. The objection that the appeal against the departmental communication was not maintainable was also rejected, as the grievance raised before the appellate authority arose from an order of the Assistant Commissioner.

                                Conclusion: The appellant was entitled to redeem the confiscated gold, and the refusal to permit release was untenable. The impugned order was modified with a direction to release the gold upon confirmation of payment of the redemption fine.


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                                ActsIncome Tax
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