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The case involved Sheik Arif and Sheik Sadiq, apprehended at the Hyderabad Airport for carrying gold bars exceeding a value of Rs 2 Crores with our any invoices or custom declaration forms
The Telangana High Court has delivered a landmark verdict defining large-scale gold imports lacking proper invoices and declarations as "prohibited goods" under Section 2(33) of the Customs Act. The court further stipulated that individuals involved in such activities cannot request the re-export of the seized gold or contest its disposal by customs authorities. This ruling came from a division bench comprising Justice P. Sam Koshy and Justice N. Tukaramji.
As per a report by Deccan Chronicle, the case originated from the apprehension of two students, Shaik Arif and Shaik Sadiq, by customs officials at Hyderabad airport last August. The students, travelling from Bangkok, were carrying gold bars weighing 3.78 kilograms and exceeding ₹2 crore in value, devoid of any invoices, customs declaration forms, or funds to settle the requisite customs duty. They argued that they were apprehended by customs officials before they could reach the 'red channel' at the airport, where declarations are typically submitted. They also contested the customs department's notices regarding the disposal of the seized gold, claiming that such actions before the conclusion of confiscation proceedings violated Section 126 of the Customs Act. They requested the court to allow the re-export of the confiscated gold.
The customs department, represented by Senior Counsel Dominic Fernandes, countered these arguments by presenting that the students, during interrogation, admitted to receiving the gold consignment from unidentified individuals in Bangkok with instructions for delivery to a specific recipient in Hyderabad. This, according to the department, constituted an act of smuggling. They bolstered their case by citing a relevant notification No. 31/1986, dated February 5, 1986, which allows for the immediate disposal of seized gold. The counsel assured the court that if the petitioners ultimately succeeded, they would be compensated with the value of the gold they attempted to import illegally.
Regarding the re-export of goods, Fernandes informed the court that this would only be possible if the importer had made the necessary declaration under Section 77 of the Customs Act.
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