CESTAT upholds Penalty for Smuggling of Gold from UAE concealing in Embroidery Machine using Freezone Company [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad bench has upheld the penalty imposed on the persons allegedly involved in the smuggling of gold from the UAE using an overseas company.

The appellant, Shri Rameshbhai Patel was handling all the works related to import of machine of M/s Ambaji Prints, a proprietorship firm wherein his brother Shri Paresh Lakhabhai Patel is the proprietor. Two computerized embroidery machines were imported and brought to Hazira port and Bill of Entry was filed for clearance of such two computerized embroidery machines for home consumption. In detail examination of the said two machines 25 gold bars totally weighing 19.600 Kgs. Valued at Rs. 5,77,31,000/- found concealed therein. The DRI officers recorded statements of Proprietor of M/s Ambaji Print, Shri Paresh Lakhabhai Patel and Shri Manoj Gadhiya of M/s Mayura Shipping Services. Since Shri Paresh Patel stated that he was not aware about the gold having been concealed in the embroidery machines and that the entire transaction for purchase and import of the machines was handled by the Appellants herein, the DRI authorities recorded the statement of the appellants. After the investigation, the adjudicating authority has ordered confiscation of computerized embroidery machines with an option to pay fine of Rs, 5 Lakhs in lieu of confiscation of the embroidery machines, with a penalty of Rs. 50,000/- on M/s. Ambaji Prints. Further, a penalty of Rs. 1 crore was also imposed on each of the Appellants.

After hearing the arguments, the division bench consisting Mr. Ramesh Nair, Member (Judicial) and Mr. Raju, Member (Technical) observed that the Commissioner (Appeals) has rightly imposed the penalties on Appellants.

“Therefore, the same is also not required any interference. It is established from the records that Shri Nareshbhai Savaliya masterminded the entire modus of smuggling of Gold bars by concealing the same in the embroidery machine exported by his overseas firm M/s Pali Overseas Trading Co., FZC, UAE to India. He had made the financial arrangement for importing machines for M/s Ambaji Prints. Further Shri Ramsehbhai Patel facilitated and abetted Shri Nareshbhai Savaliye in nefarious activity by allowing his company M/s Pali Overseas, in UAE and M/s Ambaji Prints in India to be used for smuggling of gold in embroidery machine. Department has produced sufficient evidence to establish that both the appellants were conspirator in the smuggling of goods,” the Tribunal said.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan Premium. Follow us on Telegram for quick updates.