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        Case ID :

        2020 (2) TMI 768 - HC - Customs

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        Court Allows Installment Payments for Confiscated Gold The court granted relief to the petitioner in a Writ Petition (Civil) by allowing installment payments for the dues related to the alleged wrongful ...
                          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.

                              Court Allows Installment Payments for Confiscated Gold

                              The court granted relief to the petitioner in a Writ Petition (Civil) by allowing installment payments for the dues related to the alleged wrongful confiscation of gold and misrepresentation by customs officials. The petitioner was permitted to clear the dues in six equal monthly installments, with enforcement measures available if the payment schedule was not adhered to.




                              Issues involved:
                              1. Alleged wrongful confiscation of gold and imposition of penalty.
                              2. Allegations of misrepresentation by customs officials leading to failure to challenge original order.
                              3. Request for quashing of orders and alternative relief for installment payment.

                              Analysis:

                              Issue 1: Alleged wrongful confiscation of gold and imposition of penalty
                              The petitioner, returning from Doha to Kerala, was detained at Nedumbassery Airport, where 789.300 gms of gold were seized from him by the Air Intelligence Unit. The petitioner alleged that the officers took his signatures on blank papers and falsely incriminated him. Subsequently, a show cause notice was issued, and after a personal hearing, a penalty of Rs. 5,00,000 was imposed along with the confiscation of gold and an AC voltage converter. The petitioner, being illiterate, was misled by officials regarding the release of confiscated gold upon payment of a nominal fine, which led to his failure to challenge the original order.

                              Issue 2: Allegations of misrepresentation by customs officials leading to failure to challenge original order
                              Due to the misrepresentation by customs officials, the petitioner did not challenge the original order within the stipulated time frame for approaching the appellate authority. The petitioner's alternate remedy was exhausted as the period for appeal had lapsed, and the officials had collected the title deed of his house, further complicating the situation. The petitioner sought relief in the form of quashing the orders and permission to appeal to the appellate tribunal or payment of the demanded amount in installments.

                              Issue 3: Request for quashing of orders and alternative relief for installment payment
                              During the proceedings, the petitioner's counsel requested the court to direct the respondents to accept payment of the dues covered by the demand notice in installments, considering the petitioner's circumstances. The Central Government Counsel representing the customs department opposed this plea. The court, after considering the submissions and the petitioner's situation, ordered that the petitioner could clear the dues in six equal monthly installments, with the first installment due by a specified date. Failure to comply with the installment schedule would allow the respondents to enforce the demand through legal means.

                              In conclusion, the court disposed of the Writ Petition (Civil) by granting the petitioner relief in the form of installment payments for the dues, thereby addressing the issues raised regarding the alleged wrongful confiscation of gold, misrepresentation by customs officials, and the request for quashing of orders.
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                              ActsIncome Tax
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