The Delhi High Court ruled that gold smuggled in violation of statutory import conditions is 'prohibited goods' under the Customs Act, and redemption under Section 125 is a discretionary remedy, not a right.
Delhi HC Rules Smuggled Gold Is Prohibited Goods
The Delhi High Court has held that gold imported contrary to statutory regulations constitutes “prohibited goods” under Section 2(37) of the Customs Act, 1962. The Court emphasized that while Section 125 provides for redemption of confiscated goods, it is a discretionary power exercisable by authorities and does not confer an indefeasible right on the importer.
The ruling underscores that violations of licensing or import conditions render goods liable to confiscation under Section 112, with redemption only permitted in exceptional circumstances. The Court observed that public interest in enforcing customs laws outweighs personal claims for return of smuggled consignments.
Practitioner Takeaway: Importers must ensure strict compliance with import conditions. Claims for redemption under Section 125 will be scrutinized rigorously, and courts will uphold confiscation where statutory restrictions are breached.
Citations
- Customs Act, 1962, Section 2(37), Section 112, Section 125