No Knowledge about Gold Concealed in Bags: CESTAT deletes Penalty u/s 112 of Customs Act [Read Order]
The appellant had never admitted that they had any knowledge during carrying of the gold in the bags
![No Knowledge about Gold Concealed in Bags: CESTAT deletes Penalty u/s 112 of Customs Act [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/05/Gold-Concealed-in-Bags.jpg "No Knowledge about Gold Concealed in Bags: CESTAT deletes Penalty u/s 112 of Customs Act [Read Order]")
The Kolkata bench of the Customs Excise and Service Tax Appellate Tribunal ( CESTAT ) rendered a decision to annul the penalty under Section 112 of the Customs Act, 1962, citing lack of knowledge regarding the concealed gold in bags. The incident unfolded when officers from DRI, Siliguri, Regional Unit, acting on intelligence, intercepted four individuals—two of whom were women—along...
The Kolkata bench of the Customs Excise and Service Tax Appellate Tribunal ( CESTAT ) rendered a decision to annul the penalty under Section 112 of the Customs Act, 1962, citing lack of knowledge regarding the concealed gold in bags.
The incident unfolded when officers from DRI, Siliguri, Regional Unit, acting on intelligence, intercepted four individuals—two of whom were women—along with their luggage, upon the arrival of the Dibrugarh-Howrah Kamrup Express at Platform No.3 of New Jalpaiguri Railways Station on June 23, 2013, at 4:15 PM. Among the apprehended were Pahalad Soni and Ms. Priyanshu Kumari.
Pahalad Soni, the group's apparent leader, confessed to concealing smuggled gold within the handlebars of four trolley bags they were carrying. Subsequent examination revealed the gold bars hidden within the handlebars, wrapped in carbon paper and black adhesive tape. A total of 40 gold bars were discovered, weighing 14.53935 kilograms.
Following the seizure, appellant Vijay Kumar was detained, and a statement was recorded from Pahalad Soni. Soni claimed to be a silver ornament hawker who had been approached by an individual named Chhotu from Dimapur, soliciting his assistance in transporting gold from Dimapur to Kolkata for a handsome fee. Soni admitted to swapping bags with Chhotu, unaware of the gold concealed within.
The tribunal determined that the appellants had never confessed to knowledge of the gold smuggling operation. They were deemed to be innocently carrying the bags unknowingly loaded with gold. With neither appellant having admitted to any involvement in the smuggling scheme, the penalties were deemed inapplicable.
The two-member bench, consisting of Asok Jindal (Judicial Member) and K. Anpazhkan (Accountant Member), concluded that the appellants bore no culpability for the gold smuggling orchestrated by Soni or Chhotu. Consequently, the penalties imposed on the appellants were revoked, and the appeals were granted with associated relief.
To Read the full text of the Order CLICK HERE
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