Error in Recorded Statement not Relevant when Gold Biscuits are of Foreign Origin: CESTAT upholds Confiscation [Read Order]

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), upheld the confiscation of the gold biscuits and noted that the error in recorded statement is not relevant when the gold biscuits are of the foreign origin.

During the course of screening at Imphal Air Port, two gold biscuits in the person of Antony Philip and one gold biscuits in the person of Jochan Michael were found by the CISF Officials. After this, the Appellants were detained and the case was handed over to the Customs Officials.

The Customs Department also recorded voluntary statements of both the appellants. Antony Philip has stated that he is the owner of all three biscuits and two biscuits were recovered from this person and submitted that he had travelled to Myanmar and bought these biscuits by cash payment.

Thereafter, proceedings were initiated and the lower Authorities have absolutely confiscated the gold valued at Rs.15,78,162/-. They have also absolutely confiscated two old used wallets and penalty of Rs.1,50,000/- was imposed on Jochan Michael and penalty of Rs.1,50,000/- was imposed on Antony Philip.

The Advocate appearing on behalf of the appellant submitted that no proper procedures were followed towards seizure and confiscation of the gold biscuits. The statements said to have been given voluntarily, whereas their statements were given under pressure and not out of free will. The statements were not recorded in terms of Section 108 of Customs Act, 1962. Therefore, the entire proceedings are vitiated by faulty approach adopted by the Department.

Upholding the confiscation of the gold biscuits, a Single Member Bench of the Tribunal of R. Muralidhar, Member (Judicial) observed that “the Recorded statements did not specify that the same were being recorded in terms of Section 108 of Customs Act, 1962. However, the appellants are required to support their claim by way of proper Invoices in the first place. They were not in a position to prove the same. Therefore, even the error pointed out about the Recorded Statement cannot come to the rescue of the appellants.”

To Read the full text of the Order CLICK HERE

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