Review jurisdiction requires an error apparent on the face of the record or another ground warranting reconsideration of the impugned order. No such apparent error or merit for reconsideration was established. The review petition was therefore dismissed.

Compound and standardised vegetable extracts remain classifiable under heading 1302 where added substances serve as carriers, diluents, standardising media or antioxidants and do not confer the character of a food preparation, medicament or another specifically covered product. The millet and wheat extracts supplied the product's botanical identity and essential character, while sunflower seed oil acted as a carrier and standardising medium and rosemary extract as an antioxidant. Classification depends on the goods' condition at importation as bulk raw material, not their later use in nutraceutical tablets. The product is therefore classifiable as an other vegetable extract under tariff item 1302 19 39, rather than as a residual food preparation under heading 2106.

Foreign-origin gold seized on a reasonable belief of smuggling attracts the statutory burden under Section 123 of the Customs Act, 1962. The possessor and claimant-owner must establish lawful import; foreign markings, transport through an Angadia firm and absence of import evidence supported confiscation. Domestic purchase invoices that cannot be correlated with lawful import do not discharge this burden. The gold was therefore liable to confiscation, subject to redemption on payment of fine. Handling and transporting goods whose lawful source was not established also justified penalty, which remained enforceable along with confiscation and redemption consequences.

Reasonable belief and foreign markings may justify an initial seizure of notified gold but do not establish smuggling for final confiscation. Verifiable evidence of domestic procurement, including supplier invoices, payment records and GST documentation, shifts the evidentiary burden to the department to investigate and rebut that evidence; delay in producing records is insufficient by itself to reject them. Retracted and disputed statements require independent corroboration. A connected proceeding may weaken such statements without operating as strict res judicata. Indian currency is confiscable as sale proceeds only on proof of a proximate, identifiable nexus with known smuggled goods. Without proof of smuggling, confiscation and penalties fail.

Social Welfare Surcharge is not payable where specified imports are wholly exempt from Basic Customs Duty under the relevant customs exemption notifications and the notional duty amount is debited through MEIS/SEIS duty-credit scrips. The surcharge is computed with reference to customs duties levied and collected under the Customs Act; where exempted Basic Customs Duty is nil, no statutory base exists for the surcharge. Debit in duty-credit scrips operates as a scheme mechanism rather than actual collection of Basic Customs Duty. Circular No. 03/2022-CUS is clarificatory and beneficial and applies to pending disputes for earlier periods. Absence of a separate surcharge exemption does not independently create surcharge liability.

Section 123 of the Customs Act applies only where seizure rests on objectively established reasonable belief that goods were smuggled. Unmarked gold seized in a town area, without intrinsic foreign-origin indicators, is not shown to be smuggled merely by quantity or absence of documents at interception, particularly where GST-compliant invoices, stock records and tax filings support domestic procurement. Statements recorded under Section 108 require statutory safeguards, including examination and effective cross-examination, and need independent corroboration before supporting confiscation or penalties. Currency cannot be confiscated as sale proceeds without cogent evidence linking it to smuggling. On these principles, confiscation, penalties and retention of currency were unsustainable.

Concessional customs-duty exemption for Malaysian imports remained available where 37 of 38 Certificates of Origin were neither cancelled nor revoked and had been verified and accepted at clearance; a later communication without particulars of contravention or evidence of collusion could not invalidate them. The declared transaction value could not be rejected merely by reference to contemporary imports, absent evidence of payments beyond invoice value or documentary grounds for rejection. As misdeclaration of origin and undervaluation were not established, suppression with intent to evade duty was not proved and no penalty was imposable.

Limitation under Section 28(9) of the Customs Act is jurisdictional: adjudication after expiry of the applicable period is invalid. The phrase "where it is possible to do so" required completion within one year unless impracticable and did not permit proceedings to remain pending indefinitely; adjudication nearly fourteen years after the notice, unsupported by material for Call Book retention, was unreasonable and arbitrary. The 2018 amendment could not revive a proceeding already time-barred under the earlier law; even if applied from commencement, the adjudication exceeded the amended timeline. The delayed customs adjudication was therefore unsustainable and contrary to Article 14.

Customs detention of imported goods cannot replace statutory seizure under the Customs Act, 1962 or bypass the procedural safeguards and time limits applicable to seized goods. Pending verification or a classification dispute does not justify indefinite retention where no lawful seizure has been made. Revenue interests may instead be protected through proportionate conditions for release, including an indemnity bond for the goods' value and a bank guarantee for 25% of differential duty, subject to confirmation that the goods are fit for human consumption. Assessment or adjudication may continue in accordance with law after release.

Detention of imported goods under Customs control, where clearance cannot occur without permission, is treated as seizure for computing the six-month notice period under Section 110(2) of the Customs Act, 1962. A formal seizure memo is a later procedural step and does not reset the limitation period. Any extension under the proviso must be granted and communicated before expiry of the original six-month period calculated from detention. An extension made after that period is without jurisdiction, requiring return of the seized goods under Section 110(2).

Refund of excess customs duty is not barred by unjust enrichment where the importer establishes that duty incidence was not passed on. A Chartered Accountant certificate, Bills of Entry and sales invoices showing bunker oil was sold below its import value demonstrate that the importer did not recover the import cost or duty. Recording duty as an expense in the profit and loss account does not alone prove that the duty burden was passed to buyers. Once the importer produces this evidence, the evidentiary burden shifts to Revenue; without rebuttal material, refund remains payable.

Currency seized as evidence in an investigation into fabricated customs-scheme claims, illegal gratification and hawala transactions falls within the category of a "thing" under Section 110(3) of the Customs Act, 1962, rather than confiscable goods under Section 110(1), unless the currency itself is the subject of a customs violation. The notice-and-return requirement under Section 110(2) therefore does not apply. Writ jurisdiction under Article 226 should not direct release while connected economic-offence investigations remain pending, as premature release could impede effective investigation. The currency may be retained as evidentiary material and kept in an interest-bearing deposit with a nationalised bank until investigation concludes.

Provisional release of goods seized under customs law is governed by the statutory mechanism requiring bond, security and any necessary conditions pending adjudication. Where investigation is complete and a show-cause notice has been issued, the competent Adjudicating Authority must decide the pending release application expeditiously. Invoice-related disputes and valuation must be determined within that authority's adjudicatory jurisdiction through a reasoned order in accordance with law. The same process applies to the connected seized vehicle.

Confiscation of Indian currency as sale proceeds of smuggled goods under the Customs Act was addressed alongside the evidentiary value of statements recorded during customs inquiry. Such statements were treated as substantive evidence, while a subsequent retraction was rejected as an afterthought. Possession of smuggled goods attracted penalty consequences, and the statutory burden required proof that the goods were not smuggled. The Supreme Court found no ground to interfere with the High Court's common order.

Stock-exchange share sale proceeds supported by broker records, banking channels, contract notes, demat statements, clearing delivery and securities transaction tax cannot be treated as unexplained money merely on uncorroborated penny-stock allegations. In the absence of evidence linking the assessee to cash circulation, collusion, entry operators or manipulation, suspicion cannot displace documentary evidence; the addition under Section 69A was deleted. Reassessment was nevertheless valid because substantial long-term capital gains had not been disclosed through a return, and their claimed exempt status did not remove the disclosure obligation.

Indexed cost of improvement claimed on sale of flats received under a joint development arrangement requires reliable proof of actual expenditure. Where the development agreement placed construction costs on the developer and the flats were sold as semi-furnished, quotations and proposed-work estimates did not establish further improvement costs. Evidence such as material purchase records, labour-payment proof, or other documentation of expenditure was required. The proportionate NALA payment claim also required supporting evidence. In the absence of substantiation, the indexed cost of improvement and related NALA claim were disallowable in computing long-term capital gains.

Sufficient interest-free funds supported security deposits and government liabilities incurred for contracts, so proportionate interest disallowance was unsustainable, particularly where bank charges were not attributable to the advances. Ad hoc disallowance of cash expenses could not stand because it rested on general concerns about profitability and cash payments without identified defects in expenditure records or supporting evidence. Specified bank note deposits during demonetisation were satisfactorily explained by regular cash collections from mining, royalty and toll-plaza operations, supported by cash books, cash-sale summaries and deposit records; the audited books were not rejected and no evidence rebutted the business source. All three additions were deleted.

Penalty for concealment or furnishing inaccurate particulars cannot be sustained where income offered during survey is included in the return and the assessment accepts that return without variation. For assessment year 2015-16, the enhanced tax rate under Section 115BBE, applicable prospectively from assessment year 2018-19, cannot be used to compute penalty. Penalty proceedings are also vulnerable where the notice under Section 274 read with Section 271(1)(c) fails to specify whether concealment or furnishing inaccurate particulars is alleged, notwithstanding satisfaction recorded in the assessment order. On these grounds, no penalty liability survives.

Profits from captive consumption of wind-generated electricity qualify for deduction under Section 80IA. Eligible profits must be computed using the rate at which the Electricity Board supplies electricity to consumers, rather than the lower rate at which generating companies supply electricity to the Board. Expenditure cannot be disallowed merely because payment recipients could not be produced more than two years later or because payments increased over earlier years. Further, payments below the tax-deduction-at-source threshold do not attract disallowance for non-deduction of tax. The claimed captive-power deduction and deletion of the expenditure disallowance follow.

Long-term capital gain from listed-share sales cannot be treated as unexplained cash credit solely on a general investigation report alleging penny-stock transactions. Where the report does not identify or implicate the taxpayer, and purchases and sales occur through banking channels, shares are credited to a demat account, and trading occurs on a recognised stock exchange, adverse inference requires independent material linking the taxpayer to accommodation entries. Absence of inquiry with the stock exchange or counterparties further prevents rejection based on presumption or surmise. The addition was directed to be deleted.