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Bombay High Court

SHWETA KISHINCHAND KODWANIversusUNION OF INDIA THR DEDICATED LEGAL CELL AND ORS

Decided
Disposal
Disposed Off

Holding

The appellate authority is available and must decide the appeal within the stipulated time frames, with the question of restitution left open pending the appeal.

Summary

The petitioner, Shweta Kishinchand Kodwani, challenged an adjudicating authority's order that confiscated her seized gold bangles under the Customs Act, 1962, and imposed a personal penalty, while also noting that the seized gold had already been disposed of under section 110. She contended that the appellate authority was not available and that the matter had not been heard, seeking restoration of gold of equivalent value or compensation. The respondents argued that an appeal had been filed before the Commissioner of Customs (Appeals) and that the appellate process should proceed. The Court held that the appellate authority is indeed available and directed the adjudicating authority to decide the appeal within four weeks, and if appealed to the Commissioner of Customs (Appeals), to decide within six weeks, leaving the question of restitution open pending the appeal. The petition was ultimately disposed of without a substantive order on the merits.

Issues considered

  • Whether the appellate authority under the Customs Act is available for the petitioner's grievance.
  • Whether the adjudicating authority must decide the pending appeal expeditiously.
  • Whether the petitioner is entitled to restoration of gold of equivalent value or monetary compensation for the disposed seized goods.

Legislation cited

Subjects

  • Customs Act
  • seizure
  • confiscation
  • appeal
  • disposal of goods
  • restoration
  • penalty
  • redemption fine

Judgment

                                                                            62-wp 11581-26.doc
ARJUN
MACHHINDRA                     IN THE HIGH COURT OF JUDICATURE AT BOMBAY
KADAM
                                       CIVIL APPELLATE JURISDICTION
Digitally signed by
ARJUN MACHHINDRA
KADAM                                   WRIT PETITION NO. 11581 OF 2026
Date: 2026.09.08
16:24:40 +0530

                      Shweta Kishinchand Kodwani                            … Petitioner
                              Versus
                      Union of India & Ors.                                 ... Respondents

                                          __________________________

                      Mr. Anand Sachwani a/w. Mr. Rajesh Shah and Mr. Ganesh Patil for
                      the Petitioner.
                      Mr. Jitendra Mishra a/w. Ms. Sangeeta Yadav and Mr. Ashutosh
                      Mishra for the Respondents.
                                         __________________________

                                                   CORAM       : M. S. KARNIK AND
                                                                 SANDESH D. PATIL, JJ.
                                                   DATED       : 7th SEPTEMBER, 2026.

                      P.C. :

                      1.          Heard learned counsel for the petitioner.          Learned

                      counsel for the petitioner prayed for confiscation of gold in terms of

                      prayer clause (b). It is the contention of the learned counsel for the

                      petitioner that even before the goods could be released, the same has

                      been disposed of. Our attention is invited to the operative order

                      passed by the adjudicating authority. Para 19 reads thus:-

                                  “i)   I order confiscation of the seized gold “24 KT
                                  crude Gold Bangles (10 pcs) having gross & net weight
                                  of 370.030 grams valued at Rs. 19,72,977/- (Rupees

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           Nineteen Lakh Seventy Two Thousand Nine Hundred
           Seventy Seven only)” under section 111 (d), 111(1) and
           111(m) of the Customs Act, 1962. However, I give an
           option to the noticee to redeem the gold on payment of
           redemption fine of Rs. 1,50,000 (Rupees One Lakh Fifty
           Thousand only) and duty and any other applicable
           charges in lieu of confiscation under section 125 of the
           Customs Act, 1962 within 120 days of issuance of this
           order.
           ii)      I impose personal penalty amounting to Rs.
           1,00,000/- (Rupees One Lakh only) on Ms. Sweta
           Kishinchand Kodwani, holding Indian Passport No.
           W7525011, under section 112 (a) of the Customs Act,
           1962.
           iii)     As the seized goods have already been disposed
           off under section 110 of the Customs Act, 1962; the
           amount of sale proceeds realised from the disposal of
           the seized goods shall be adjusted towards the
           redemption fine, duty, penalty and any other charges
           payable in terms of the provisions of the Customs Act,
           1962. Any balance amount remaining thereafter shall
           be refunded to the noticee and any shortfall shall be
           recoverable from her in accordance with law.”


2.         Mr. Mishra, learned counsel for the respondents submits

that against the adjudication order, the appeal has been preferred

before the appellate authority. It is the contentions of the petitioner


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that the appellate authority is not available and the matter has not

been heard.

3.         It is submitted that the appellate authority is now

available. We accordingly direct the adjudicating authority to decide

the appeal expeditiously and in any event within a period of four

weeks from the date of communication of this order on its own

merits, in accordance with law.

4.         In para (iii) of the operative order, it has been mentioned

by the adjudicating authority that as seized goods have already been

disposed off, the amount of sale proceeds realised from the disposal

of the seized goods shall be adjusted towards the redemption fine.

5.         Against the Order dated 21st April, 2026, at page 92 there

is a remedy of appeal before the Commissioner of Customs

(Appeals). If such an appeal is filed, we request the Commissioner of

Customs (Appeals) to decide the appeal expeditiously and in any

event within a period of six weeks from the date of the presentation

of the appeal considering that the goods of the petitioner were

disposed of even before the issuance of show cause notice.

6.         It is open for the petitioner to raise the contention that

the authority ought to restore gold of equivalent value to the

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petitioner and compensate the petitioner by making payment of an

amount equivalent to the market value of the said gold as on the

date of deduction. The question as to whether the petitioner would

be entitled to such relief, including any deduction, fine or penalty, is

kept open, as the appeal is pending.

7.           The petition is disposed of.




     (SANDESH D. PATIL, J.)                       (M. S. KARNIK, J.)




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