Order Date – 06 January 2023

Parties: Shri Sailendra Narayan Panda Vs Pr. Commissioner of CGST & CX, Bhubaneswar

Facts –

• A raid was conducted in the residential premises of the Appellant, Shri Sailendra Narayan Panda, on 02.04.1976 and seized gold ornaments pledged with the Appellant’s family and gold ornaments of the family itself.
• Confiscation and penalty and in respect of 11 balas were set aside and the proceeding was remitted back to the Collector, Adjudicating authority, for reconsideration. The Adjudicating authority after remittance by the Hon’ble High Court of Orissa sat over the matter for a period of 27 years and did not pass any order.

Issue –

• Whether the confiscation of Gold is in order?

Order –

• The Tribunal observed that 11 gold Balas of the Appellant are lying with the Department since 02.04.1976. The Hon’ble High Court by virtue of order dated 16.07.1992 passed in OJC No.1891 of 1981 was pleased to set aside confiscation order passed by the Adjudicating authority holding the said 11 gold Balas as primary gold and also levying fine in respect of the gold Balas.
• Since the matter has not been adjudicated by the Adjudicating authority in any way as per direction of the Hon’ble High Court for a long 27 years and in the meantime the Act itself has also been repealed since 30 years. The Hon’ble High Court was also pleased to hold that under the new fiscal policy, possession of gold is not an offence.
• It is evident that the gold Balas that it is usual and common that the said gold Balas are used by the people of that locality as ornaments in their neck and also wrist.
• In any view of the matter the seized gold Balas are ornaments and may be released to the Appellant. In view of the above discussions, the impugned order is set aside and the Appeal