90 Smuggled Gold biscuits Seized: CESTAT upholds Customs Seizure, Rejects ‘No Knowledge’ Defence of Smugglers [Read Order]

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT ) upheld the confiscation of 90 foreign-origin gold biscuits, weighing over 10.49 kg and valued at approximately ₹2.77 crore rejecting the defense of ‘no Knowledge’.

The background of the matter is that the Customs authorities intercepted two individuals named Vishal Kumar Trivedi and Kundan Kumar Vyas (appellants) and recovered 50 gold biscuits from one and 40 from the other.

Because the gold was of foreign origin and the appellants could not produce any valid documentation to prove it had been lawfully imported, the goods were seized. The original adjudicating authority ordered absolute confiscation under Sections 111(b) and 111(d) of the Customs Act and imposed substantial penalties of ₹30 lakh and ₹20 lakh.

The appellants appealed this decision, arguing they were merely "carriers" hired for a small fee by a person named “Rajesh Bhai” and had no "reason to believe" the goods were smuggled.

However, the Tribunal found this narrative unconvincing and legally unsupported. The Bench observed that the story regarding “Rajesh Bhai” was unverifiable. And, the mastermind could not be traced, and the mobile number provided belonged to an unrelated person.

Also, the appellants failed to provide any credible details about the source of the gold or the identity of the people involved in the supply chain, said the bench.

The possession of high-value contraband without documentation, with the inability to substantiate the alleged role as mere carriers, strongly pointed towards conscious involvement, stated the bench.

The bench of R. Muralidhar (Judicial member) and Rajeev Tandon (Technical member) ruled that the circumstances and inconsistencies in the appellants’ statements established their conscious involvement in smuggling activities, making the goods liable for confiscation and penalty under the Customs Act, 1962.

Even though the Bench confirmed the confiscation and the liability for the offense, it relaxed financial penalties to ₹3 lakh and ₹2 lakh, respectively.

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