Import of Gold Without Invoices and Declarations Amounts to Smuggling: Telangana HC

Hyderabad: The Telangana High Court made it clear that bringing huge quantities of gold into the country from abroad in any form without invoices and declarations would squarely fall within the definition of “prohibited goods” under Section 2(33) of the Customs Act.

The court also noted that persons involved in such acts cannot ask for re-exportation of such gold to the country from which it was brought and they cannot question disposal of such gold of any form, after seizure by the customs department.

The division bench, comprising Justice P. Sam Koshy and Justice N. Tukaramji, was dealing with a petition filed by two students, Shaik Arif and Shaik Sadiq, who were held by officials of the customs intelligence department at Hyderabad airport upon arrival from Bangkok last August.

They had brought 3.78 kg of gold bars worth more than `2.20 crore, without any invoices, customs declaration forms or money to pay customs duty at the airport. They argued before the court that the customs officials apprehended them much before they could reach the ‘red channel’ at the airport where submission of declaration forms are accepted.

They also challenged the notices by the customs department for disposal of such seized gold and argued that disposal of the gold even before confiscation proceedings is finalized is contravention to Section 126 of the Customs Act. They also requested the court to allow re-export of the gold that was seized.

Dominic Fernandes, senior counsel for customs department, explained to the court that during interrogation, the petitioners revealed that they were handed over this consignment by some unknown persons at Bangkok and were told to deliver it to someone at Hyderabad. Counsel said that this was nothing but smuggling of gold.

Fernandes submitted that as per the notification No.31/1986, dated February 5, 1986, issued by the Centre, gold can be disposed of immediately on its seizure. He contended that ultimately if the petitioners succeed, they would be given the value of the gold which they had tried to bring illegally into the country.

Regarding re-export of articles, counsel for customs informed the court that re-export would be possible only if the person, who has imported the goods, has made a declaration as is required under Section 77 of the Customs Act.