It is arbitrary not to give option to pay fine in lieu of confiscation to the person in possession of Gold The Hon'ble Customs

Last updated: 10 November 2021

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The Customs, Excise & Services Tax Appellate Tribunal (CESTAT) has ruled that it is arbitrary for customs authorities to confiscate gold without offering the person in possession the option to pay a fine. The tribunal found that Section 125 of the Customs Act mandates this option, even if the goods are seized and the owner is unknown. Failing to provide this choice, as happened in the case of Sherly Sany, renders the confiscation order invalid.

Court :
CESTAT, Bangalore

Brief :
The Hon’ble Customs, Excise & Services Tax Appellate Tribunal, Bangalore ("CESTAT") in the matter of Sherly Sany v. C.C, Cochin [Final Order No. 20812 / 2021 dated October 28,2021], while quashing an order of the customs authorities, held that the order of confiscation without offering an option to pay fine to the person in possession of gold is arbitrary since the provisions of law provide such an option to the person.

Citation :
Final Order No. 20812 / 2021 dated October 28,2021

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1999

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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