High Court Quashes Seizure of Jewellery Consignments and Related Proceedings

High Court Quashes Seizure of Jewellery Consignments and Related Proceedings

The petitions followed the confiscation of jewellery consignments on 23.10.2023 that were being shipped through a carrier. The consignments had invoices and accompanying records, but despite the presence of such documents, the goods were intercepted, seized and taken over by the Income Tax Department of the employees who were only entrusted with the duty of carrying the consignments, and they were nevertheless treated as if they were the owners, and proceedings were initiated against them.

The petitions challenged the seizure itself, the requisition made thereafter, and the consequential proceedings, on the ground that the entire action was unsupported by law and beyond jurisdiction. The grievance put before the Court was that lawful goods duly backed by documents were arbitrarily detained, and that a mere employee was wrongly made the subject of proceedings.

Issue Before HC: Whether the seizure and confiscation of the 23.10.2023 jewellery consignments and the proceedings against an employee were legally justifiable.

HC’s Ruling: The Court held that the seizure and requisition of the consignments could not be maintained in law. It was observed that once valid documents of ownership and movement had been produced, there was no authority to withhold the goods or to prolong their detention. The action of treating an employee as the owner and proceeding against him was also held to be misconceived and beyond jurisdiction.

In consequence, the Court quashed the seizure, the requisition under Section 132A, and all consequential proceedings under the Income Tax Act. The authorities were directed to release the consignments to the rightful parties without any further delay. The writ petitions were allowed, notices discharged, and the rule made absolute.

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