Penalty revoked due to lack of evidence in Customs Act and FEMA case

The Tribunal set aside the penalty imposed on the appellant under the Customs Act and FEMA for alleged purchase of smuggled gold due to lack of evidence. The appellant denied buying gold from the seller implicated in the case, and no corroborative evidence was presented. Consequently, the penalty was revoked, and the appeal was granted with consequential benefits.

---

---

Issues:
The judgment involves the imposition of penalty under various sections of the Customs Act, 1962 and the Foreign Exchange Management Act, 1999 based on allegations of purchasing smuggled gold.

Summary:

Issue 1: Imposition of Penalty under Customs Act and FEMA
The appellant appealed against the penalty imposed under Sections 112, 114, 114A, 114AA of the Customs Act, 1962 r/w Section 13 of the Foreign Exchange Management Act, 1999. The case involved two ladies from Kyrgyzstan who admitted to bringing gold into India through illicit means and selling it to Shri Ravinder Suri, who allegedly sold it to the appellant. However, the appellant denied purchasing the gold from Sh. Ravinder Suri, and no corroborative evidence was found to support the allegation. The Tribunal held that no penalty could be imposed on the appellant due to lack of evidence, and accordingly set aside the penalty.

Decision:
The Tribunal found that there was insufficient evidence to prove that the appellant had purchased smuggled gold as alleged. Therefore, the penalty imposed on the appellant under the Customs Act and FEMA was set aside, and the appeal was allowed with consequential benefits.

---