CESTAT directs Customs Authorities to release 6 pieces of Confiscated Gold bars, Indian Currency not proved to be sale proceeds of Smuggled Gold [Read Order]

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) directed the Customs Authorities to release 6 pieces of confiscated gold bars, Indian Currency not proved to be sale proceeds of smuggled Gold.

The respondent, Prabhash Kumar Jalan is the Proprietor of Jalan Jewellers submitted a petition claiming ownership of the seized 6 yellow metals believed to be Gold and Indian Currency amounting to Rs 3,31,50,000.

In the Show, Cause Notice the respondent was asked to show cause as to why the seized gold weighing 6 kgs valued at Rs 1,86,60,000 which appears to be illegally imported into India through unauthorized route and manner and kept without any proper/valid documents, should not be confiscated under section 111(b) and 111(d) of the Customs Act 1962 and why the seized Indian Currency amounting to Rs 3,31,50,000 which appeared to have been procured by the sale of smuggled gold should not be confiscated under section 121 of the Customs Act 1962. It was also proposed in the Show Cause Notice as to why penalty under sections 112(b) and 114AA of the said Act should not be imposed on the respondent.

The coram of Judicial Member P.K. Choudhary and Technical Member Raju held that the confiscated gold was not of Foreign origin and smuggled into India. The confiscated Indian Currency amounting to Rs 3,31,50,000 which has been claimed by the respondent is not established or proved to be the sale proceeds of smuggled Gold.

Agreeing with the reasons put forth by the Commissioner (Appelas) the Tribunal held that there is no justification for the imposition of penalty on the Respondent under section 112(b) and 114AA of the Customs Act 1962.

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Commissioner of Customs vs Prabhash Kumar Jalan , 2021 TAXSCAN (CESTAT) 207 , Shri M.P.Toppo , Shri Amit Awasti