Pre-adjudication disposal of seized non-perishable gold is impermissible without a show cause notice and adjudication.

Disposal of seized non-perishable gold cannot be ordered merely on the basis of a recorded statement when no show cause notice has been issued and adjudication has not been completed. The Kerala HC held that, in the absence of perishability, the authorities must first follow the statutory notice and adjudicatory process before taking any disposal action. The notice for disposal was therefore set aside, and the authorities were required to issue a show cause notice, complete adjudication, and proceed only thereafter.

---

---

Issues: Whether the authorities could direct disposal of seized gold under Section 150 of the Customs Act, 1962, solely on the basis of a statement recorded under Section 110 of the Customs Act, 1962, without issuing a show cause notice or completing adjudication, when the seized goods were not perishable.

Analysis: The notice for disposal was founded on the petitioner's statement and the statutory power relating to disposal of seized goods. The seized article was not perishable, and no show cause notice or adjudication had preceded the proposed disposal. In such a situation, hurried disposal without first affording the petitioner an opportunity through adjudicatory process was not justified.

Conclusion: The notice under Section 150 of the Customs Act, 1962 was set aside, and the authorities were directed to issue a show cause notice, complete adjudication, and proceed thereafter.

Final Conclusion: Disposal of non-perishable seized goods cannot be undertaken merely on the basis of a recorded statement without prior adjudication and observance of the notice requirement.

Ratio Decidendi: Where seized goods are not perishable, pre-adjudication disposal without issuing a show cause notice is impermissible and the statutory process of adjudication must precede any disposal action.

---