CESTAT upholds Penalty for Confiscation of 6kg Emirates Gold and Packing Machines on ground of Illicit Smuggling [Read Order]

The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the penalty imposed for the confiscation of 6kg Emirates gold and packing machines due to illicit smuggling. 

Planet Green Retail, the appellant assessee appealed against the ex-parte order passed by the Commissioner (Appeals) for confirming the confiscation of 6 kg. of gold valued at Rs. 1,45,99,200/-, the seizure of machines and the packing material, which was used for concealing the gold and the imposition of penalty. 

Saksham Garg, the counsel for the assessee contended that the assessee had no connection with the impugned consignment and no document related to the impugned consignment was available with the assessee and the assessee never received any communication as that of show cause notice or notices of personal hearing nor even the order-in-original. 

Rajesh Singh, the counsel for the department contended that the adjudicating authority had meticulously examined the evidence on record before holding the assessee guilty, penalizing the assessee and before ordering the confiscation of seized machines and the gold which was found concealed in the machines. 

Also submitted that the seizure of 6kgs of gold and its packing machines are absolute confiscation and liable for illicit smuggling. 

The Bench observed that the department had made sufficient compliance with Section 123 of Customs Act, 1962, and the assessee also failed to respond to three notices of personal hearing where after the impugned order was passed as ex-parte. 

The two-member bench comprising Rachana Gupta (Judicial) and Hemambika Priya (Technical) upheld the penalty imposed for the confiscation of gold and packing machines while rejecting the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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