Allegation of Duty-Free Gold Under Replenishment Scheme Unsustainable; Madras HC Bars Criminal Proceedings Against Jewellery Exporter

The Madras High Court restrained criminal proceedings against a jewellery exporter who faced allegations of irregularities in the duty-free gold replenishment scheme. The exporter was accused of misusing the scheme intended for gold imports under export incentives. The Court held that the allegations were unsustainable, as the petitioner complied with statutory provisions and documentation requirements. The judgment emphasized that prosecution cannot be initiated merely based on suspicion without proper verification of facts. This decision highlights the need for due diligence before launching criminal proceedings under customs and excise regulations, protecting exporters who operate within legal frameworks while ensuring the integrity of government schemes.