2001 (10) TMI 395 - AT - Customs

Tribunal Upholds Gold Confiscation Under Gold Control Act, Rejects Redemption Claims

The Tribunal upheld the absolute confiscation of the gold under the Gold Control Act, rejecting the appellant's arguments regarding redemption and ... Reference to High Court Issues:1. Confiscation of gold under the Gold (Control) Act, 1968.2. Denial of option for redemption under Section 73 of the Gold Control Act.3. Confiscation based on retracted statement.4. Determination of foreign origin of gold.5. Reliance on purity report without chemical examination.Issue 1: Confiscation of GoldThe Tribunal upheld the absolute confiscation of seized gold of 23.9 ct purity. The appellant claimed the gold was obtained from old ornaments, but the Tribunal rejected this, concluding the gold was not of domestic origin. The Tribunal found no evidence to support the appellant's claim and held the gold was likely foreign in origin due to its high purity. The appellant's argument that the gold could be redeemed under Section 73 of the Gold Control Act was dismissed as the Tribunal deemed the gold as smuggled, hence not redeemable.Issue 2: Denial of Redemption OptionThe appellant argued for the option to redeem the gold under Section 73 of the Gold Control Act. However, the Tribunal rejected this argument, stating that the gold was primary gold with high purity, likely smuggled, and therefore not eligible for redemption. The Tribunal emphasized that the decision to confiscate was based on factual analysis and not subject to High Court reference.Issue 3: Confiscation based on Retracted StatementThe Tribunal considered the appellant's retracted statement regarding the gold's origin but found it belated and unconvincing. Despite the appellant's claim that the gold was from old ornaments, the Tribunal concluded that the gold's purity indicated a foreign source. The Tribunal highlighted inconsistencies in the appellant's version and upheld the confiscation based on the analysis of facts.Issue 4: Determination of Foreign OriginThe Tribunal determined that the gold's purity of 23.9 ct indicated a foreign origin, as such high purity gold is typically manufactured in countries with advanced equipment. The Tribunal rejected the appellant's claim that the gold was from old ornaments, citing lack of evidence and sophistication required to achieve such purity domestically.Issue 5: Reliance on Purity ReportThe Tribunal accepted the purity report provided by the goldsmith without chemical examination by the Custom House. The appellant contested this reliance, arguing for a chemical examination. However, the Tribunal upheld the decision, emphasizing the high purity of the gold and the lack of evidence to support the appellant's claims regarding the gold's origin.In conclusion, the Tribunal upheld the absolute confiscation of the gold under the Gold Control Act, rejecting the appellant's arguments regarding redemption and domestic origin. The decision was based on the analysis of facts and the determination of the gold's likely foreign origin due to its exceptional purity.