The Hyderabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the confiscation of 22 numbers of gold biscuits on the grounds of the absence of illegal smuggling.
Mitta Sunil Kumar, the appellant assessee was carrying the Jewellery business at Proddatur, YSR Kadapa District. His Employee Pachipulusu Venkata Nageswara Rao ( P V N Rao) carries 22 numbers of gold biscuits of 100 gms each, a total weighing 2200 gms.
The assessee appealed against the order passed by the Additional Commissioner, who was pleased to order ‘absolute confiscation’ of 22 gold biscuits holding the same to be smuggled total weighing 2200 valued at Rs.71,44,968/- under Section 111(d) and 111(l) of the Customs Act,1962.
Veda Samhitha, the counsel for the assessee contended that the non-smuggled nature of gold is evident on the face of the record, and also the fact that the assessee produced the Goods Service Tax (GST) invoice in respect of the purchase. Thus, the impugned order was erroneous and fit to be set aside.
A Rangadham, the counsel for the department relied on the decisions made by the lower authorities and contended that the goods were illegally smuggled and liable for confiscation.
The Bench observed that it was evident from the facts apparent in the show cause notice, that the serial numbers of the 22 gold biscuits are covered within the 40 kg gold purchased by DP Gold Pvt Ltd., Chennai and thereafter they had sold the gold to other dealers/ other jewellers. Thus, the allegation of the smuggled nature of gold in question does not stand and the gold in question was not smuggled in nature.
A single-member bench comprising Anil Choudhary (Judicial) directed the Revenue either to return the gold to the assessee or to pay the value – the amount of gold as valued on the date of sale/melting with interest as per rules.
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