Legal principle

Where seized goods are disposed of even before issuance of the show cause notice, the High Court may dispose of the writ petition by directing expeditious disposal of the statutory appeal while leaving the noticee's claims for restoration of equivalent goods and compensation open to the appellate authority.

Court decision

The writ petition was disposed of. The court directed that the appeal be decided expeditiously and in any event within four weeks from communication of the order, on its own merits and in accordance with law, and further requested the Commissioner of Customs (Appeals) to decide any appeal filed against the order dated 21st April 2026 expeditiously within six weeks of its presentation, considering that the petitioner's goods were disposed of even before issuance of the show cause notice. The petitioner was left free to argue before the appellate authority that gold of equivalent value ought to be restored and compensation paid equal to the market value as on the date of deduction, with that question (including any deduction, fine or penalty) kept open as the appeal is pending. The relief was effectively granted in the form of procedural directions for expeditious appellate hearing, not a final adjudication on the merits.

Facts

The petitioner, Ms. Shweta Kishinchand Kodwani, was the noticee in adjudication proceedings concerning seized gold — 24 KT crude gold bangles (10 pieces) of gross and net weight 370.030 grams, valued at Rs. 19,72,977/-. The adjudicating authority ordered confiscation of the gold under sections 111(d), 111(1) and 111(m) of the Customs Act, 1962, but gave an option to redeem it on payment of a redemption fine of Rs. 1,50,000 plus duty and applicable charges under section 125 within 120 days, and imposed a personal penalty of Rs. 1,00,000 under section 112(a). The seized goods had already been disposed of under section 110 of the Customs Act, and the operative order directed the sale proceeds to be adjusted towards redemption fine, duty, penalty and other charges, with any balance refundable and any shortfall recoverable from the noticee.

Key provisions

• Section 112(a), Customs Act, 1962 — Penalty for improper importation of goods
• Section 110, Customs Act, 1962 — Seizure of goods, documents and things
• Section 111(1), Customs Act, 1962 — Confiscation of improperly imported goods etc
• Section 125, Customs Act, 1962 — Option to pay fine in lieu of confiscation