Refund of sale proceeds when seized/confiscated goods are disposed of but the seizure/confiscation is set aside
Quite often, the Department sells the seized goods even before confiscation and quite often the Department's confiscation is quashed by higher appellate authorities. On such occasions, the Department cannot return the confiscated goods; so they will have to refund the sale proceeds.
Somebody in the Department had a doubt as to whether in such cases, the sale proceeds or the current market price is to be refunded. It is strange that Revenue officers get such doubts. But Board has n o doubts. Board clarifies that only sale proceeds that have accrued to the Government shall be refunded to the owner of the goods.
CBEC F.No . F.No 711/38/2007-Cus(AS) Dated : January 23, 2008