Customs Department given 45 days to seek stay order in gold bars case

The court granted the Customs Department 45 days to seek a stay order in a case involving the implementation of an order related to the confiscation and penalty reduction of undeclared gold bars by a Singaporean citizen of Indian origin arriving at Chennai Airport. Failure to obtain a stay within the specified period would result in the release of the gold for re-export upon payment of fines and penalties, with the petitioner required to secure the Revenue's interest with a bond. The writ petition was allowed without costs, and the related miscellaneous petition was closed.

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Issues:
1. Implementation of the order passed by the first respondent dated 23.12.2015.
2. Appeal against the order of confiscation and penalty reduction.
3. Revision petition filed by the Department and the absence of a stay order.
4. Grant of time to the Customs Department to move for a stay application.

Analysis:
1. The petitioner sought a writ of mandamus to direct the respondents to implement the order passed by the first respondent on 23.12.2015. The petitioner, a Singapore citizen of Indian origin, failed to declare 1000 gms of gold bars upon arrival at Chennai Airport from Singapore. A show cause notice was issued, resulting in an order of confiscation with an option of redemption, subject to conditions.

2. Both the petitioner and the Revenue appealed against the order. The Commissioner of Customs (Appeals) partly allowed the petitioner's appeal, reducing the redemption fine and penalty but rejected the Revenue's appeal. Subsequently, the Department filed a revision petition against the Commissioner's order, leading to a show cause notice to the petitioner. The petitioner argued that the Revision Application was not maintainable as no stay had been obtained, requesting the release of the gold bars.

3. The Department confirmed filing a revision petition before the Joint Secretary (Revision Application), Ministry of Finance, Department of Revenue, New Delhi. As of the current date, no stay order had been granted by the Revisional Authority. The court acknowledged the absence of a stay order and granted the Customs Department 45 days to move for a stay application. If no stay was obtained within this period, the gold would be released for re-export upon payment of the redemption fine and penalty, with the petitioner required to file a bond securing the Revenue's interest.

4. Consequently, the writ petition was allowed on the specified terms, with no costs incurred. The connected miscellaneous petition was closed following the court's decision.

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