The Custom, Excises, Service Taxes Appellate Tribunal (CESTAT), Delhi bench directed the release of a seized gold on payment of Concessional duty.
The appellant, Asalam Khan is working as a road cleaner in Dubai. Earlier he went to Dubai and returned after about 18 months. Second time he went to Dubai returned after a stay of more than six months, at Jaipur Airport.
The appellant was intercepted by the officers of Air Customs, at the exit gate and was asked whether he had any dutiable/contraband goods to which he replied in negative.
Thereafter, the officers again X-rayed for detailed examination of his baggage and some dark round shaped images appeared in one of his checked in baggage which contained 20 yellow metal discs concealed in 10 lids of Tiger Balm and 4 cartons of Gudang Garam International Cigarettes’ were recovered and seized.
As per Rule 3 of Baggage Rules, 2016, an Indian returning to India is not permitted to import gold in any form other than ornaments in his baggage. Entry No. 321 of Notification dated 17 March, 2012, as amended exempts goods from so much of Customs duty leviable on gold bars, other than tola bars, bearing manufacturers or refiner’s engraved serial number and weight expressed in metric units and gold coins having gold content no below 99.5% imported by the eligible passenger, but excluding ornaments studded with stones or pearls, in excess of 10% of the amount calculated at the standard rate.
Advocate Kumud Bhatnagar, the Counsel for appellant urged that the appellant is a bona fide eligible passenger and accordingly, absolute confiscation of the seized goods is bad, on the sole ground of non-declaration and alleged concealment.
It was further added that As the appellant was carrying gold in a small quantity, which is not a commercial quantity by any stretch of imagination. The charge of smuggling is bad and fit to be set aside.
The Coram consisting of Anil Choudhary while partially allowing the appeal held that confiscation of gold is set aside as Concessional duty is payable under Notification No. 12/2012-Cus.
The CESTAT upheld Absolute confiscation of cigarettes but reduced the penalty under Section 112(a)(i) to Rs.10,000.
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