JUDGMENT

AMIT MAHAJAN, J INTRODUCTION

1. The petitioner, M/s. Shree Gold Art Pvt. Ltd., has filed the present writ petition seeking following prayers:

“a) Issue writ of mandamus or any other appropriate writ, direction or order quashing the detention order dated 17.08.2020, order dated 22.12.2020 whereby the legally imported gold of 53 kg has been seized and the panchnama of seizure dated 28.12.2020 whereunder the seizure of 53 kg. gold has been made.

b) Pass an appropriate writ, order or direction directing the Respondent DRI to release the detained / seized 53 Kgs gold bars legally imported by the Petitioner company on 13.08.2020 forthwith to the Petitioner company; and/or c) Pass an appropriate writ, order or direction directing the Respondent DRI to de-freeze the bank accounts in HDFC Bank, Karol Bagh with A/c no50200034032801, Yes Bank, Kirti Nagar with A/c no 034081300000450, United Bank of India with A/c no 0535050016199 and Punjab National Bank, Rajinder Nagar with A/c no 0629002100144490 of the Petitioner company; and/or d) Pass an appropriate writ, order or direction directing the Respondent No.3, DGFT to re-validate/extend the Licence of the Petitioner as per provisions of FTD Act & Rules without being influenced by the directions of DRI and grant waiver/relaxation of the composition fee, if applicable for such re-validation/extension;

and/or e) Any other order which the Hon'ble Court deems fit in the facts and circumstances of the case.”

BRIEF FACTS

2. The petitioner is a company engaged in the business of buying, selling, manufacturing, exchanging, assembling, altering, import of Gold and export of Gold ornaments under the Advance Authorization Scheme. On 19.02.2019, the Directorate General of Foreign Trade (Respondent No.3/ DGFT) authorised the petitioner under the said scheme for import of duty-free Gold Bars. In terms of Para 4.35 of Handbook of Procedures, 2015-2020, the premises where goods were to be processed was declared as 40/4019, Reghar Pura, Karol Bagh, New Delhi.

3. On 13.08.2020, the petitioner received a consignment of 53 Kg of Gold Bars, imported under B/E Nos. 8461348 and 8461516, which was released from customs after examination by the proper officer. On the same day, officers of DRI searched the premises of the petitioner and its director, Mr. Manindra Samanta, for verification of duty-free imported gold at the declared premises, that is, 40/4019, Reghar Pura, Karol Bagh, New Delhi. The search continued till the next day.

4. Directorate of Revenue Intelligence (Respondent No.2/ DRI) vide letter dated 14.08.2020 informed DGFT that it was investigating a case of diversion of duty-free imported gold under the Advance Authorization Scheme qua the petitioner, and requested DGFT to not extend the time for fulfilment of export obligation, if requested by the petitioner, without obtaining comments from it. The same was intimated to the petitioner by DGFT on 14.10.2022 vide a Deficiency Letter in reply to the petitioner’s application for revalidation of its authorization. 5. The DRI addressed another letter on 14.08.2020 to DGFT requesting it to hold the export consignment of any jewellery belonging to the petitioner for examination and sampling. Only one consignment of Rs.2,27,291 was brought to the notice of the DRI, which was deemed by it to not be examinable.

6. On 17.08.2020, another search was carried out at the declared premises. It was noted that the DRI had information that 53 kg of gold imported on 13.08.2020 under the Advance Authorization Scheme, which was not found during the search on 13.08.2020 / 14.08.2020, was then stored in the premises. During the search, 53 kg gold bars were found in the chest kept at the ground floor of the declared premises. An order, for detaining the said gold bars weighing 53 kg, was passed on 17.08.2020. It was mentioned that as per the stock position, the balance stock of duty free imported gold should have been 420.228 Kg, whereas only the 53 Kg gold, imported on 13.08