Return ₹6.5 lakh seized from 2 senior citizens in 2008: Bombay HC to customs dept

Bombay HC has expressed anguish over the “callous manner” in which the customs dept was treating senior citizens and delaying refund, though the adjudicating authority had directed to do so

The Bombay high court (HC) has directed the customs department to refund an amount of ₹6.5 lakh, which was seized from the home of two senior citizens by the Directorate of Revenue Intelligence (DRI) in 2008. The court has expressed its anguish over the “callous manner” in which the agency was treating senior citizens and delaying the refund, though the adjudicating authority had directed DRI to do so in 2011 while the Customs, Excise and Service Tax Appellate Tribunal (west zonal bench) in 2018 had also passed the same order.

The Bombay HC, while hearing the petition of a couple, was informed by their advocate that DRI had seized cash worth ₹6.5 lakh on April 17, 2008, from the Byculla residence of the senior citizens as alleged profits from the export of red sander, which is a protected item under the Customs Act. (HT FILE)

A division bench of justice S J Kathawalla and justice Abhay Ahuja, while hearing the petition of a couple – Mohammed Sajid and Shazia Khan – was informed by their advocate Shehzad Naqvi that DRI had seized cash worth ₹6.5 lakh on April 17, 2008, from the senior citizens’ Byculla residence as alleged profits from the export of red sander, which is a protected item under the Customs Act.

Naqvi informed the bench that in 2011, the adjudicating authority had observed that there was no evidence to prove that the seized cash was proceeds of the alleged offence and hence, could not be confiscated under the relevant provisions of the Customs Act. Thereafter, the couple had applied to DRI seeking return of the amount, but did not receive any response. On the contrary, in 2012, the customs commissioner (appeal) had imposed a penalty of ₹10 lakh on the couple and the seized amount was adjusted with the penalty amount.

Thereafter, the couple filed an appeal against the commissioner’s order, which was heard in 2018. The tribunal which heard the appeal set aside the penalty order and directed the authorities to return the seized amount of ₹6.5 lakh. However, after a passage of three years as the couple had not received the amount they approached HC.

After hearing the submissions, the bench observed, “We fail to understand why senior citizens of our society are being treated by the statutory authorities in such a callous manner by not refunding the amount seized from their residence despite them having secured favourable orders at least since 2018, consequently, compelling them to file the above writ petition.”

The bench then directed the counsel for joint commissioner of customs (refund), advocate Jitendra Mishra, to give an undertaking to refund the amount within a period of one week. After Mishra informed the court that the authorities would affect the refund within the time stipulated by the bench, the petition was disposed of.