Entire Quantity of Gold Which Was Seized from Assessee to Be Released on Executing Bonds | HC

Case Details: Velayudhan Gold LLP v. Intelligence Officer, Intelligence Unit, Kottarakara - [2024] 165 taxmann.com 276 (Kerala)

Judiciary and Counsel Details

• Gopinath P., J.
• M.P. Shameem Ahamed, Akhil Philip Manithottiyil, Daniya Rasheed Palliyalil & Naeem M.M. for the Petitioner.
• Muhammed Rafiq, (SPL. GP), for the Respondent.

Facts of the Case

The petitioner was a wholesale dealer in gold jewellery. It carried gold jewellery to various jewellery shops for display. While its employees were visiting a jewellery shop, the search operation was carried out at that shop and there was a difference in quantity mentioned in delivery challan and in actual quantity of gold. The department seized gold and the Adjudicating Authority held that certain quantity of gold was liable to be confiscated and also imposed penalty.

The Appellate Authority held that imposition of penalty and fine in lieu of confiscation in respect of quantity determined by Adjudicating Authority was not proper and proceedings could be continued only in respect of additional quantity which was not mentioned in delivery challan. The petitioner filed writ petition for implementation of order passed by Appellate Authority and release of seized goods.

High Court Held

The Honorable High Court observed that it was settled that goods can be released on payment of fine in lieu of confiscation. Moreover, the gold ornaments were stock-in-trade of petitioner and therefore, the entire quantity of gold which was seized from petitioner was to be released on executing bonds in manner and form required by Adjudicating Authority.