Tribunal upholds gold bar confiscation, reduces penalties, sets aside duty demand for Narayan Sharma

The Tribunal upheld the absolute confiscation of the gold bar and Indian currency, reduced some penalties, and set aside the duty demand on Sh. Narayan Sharma. The appeals were disposed of accordingly.

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Issues Involved:
1. Confiscation of gold and Indian currency.
2. Imposition of customs duty and penalties.
3. Validity of statements under Section 108 of the Customs Act, 1962.
4. Role and involvement of each appellant in the smuggling activity.

Summary:

Confiscation of Gold and Indian Currency:
The Commissioner of Customs ordered the absolute confiscation of a gold bar weighing 995.5 grams valued at Rs 32,98,350/- under sections 111(d), 111(i), 111(l), and 111(m) of the Customs Act, 1962. Additionally, Indian currency of Rs 2.20 lacs was confiscated from the premises of Noticee 2, Sh. Pardeep Saini, under Section 121 of the Customs Act, 1962.

Imposition of Customs Duty and Penalties:
- Duty of Rs 11,80,872/- was confirmed on gold valued at Rs 30,67,200/- and ordered for recovery from Noticee 3, Sh. Narayan Sharma, along with interest under section 28AA of the Act.
- Duty of Rs 23,44,804/- was confirmed on gold valued at Rs 60,90,400/- and ordered for recovery from Noticee 4, Sh. Rishab Saini, along with interest under section 28AA of the Act.
- Various penalties were imposed on the appellants under Section 112 and Section 117 of the Customs Act, 1962, ranging from Rs. 5,000/- to Rs. 15,00,000/-.

Validity of Statements Under Section 108 of the Customs Act, 1962:
The Tribunal found that the confessional statements made by the appellants under Section 108 of the Customs Act were admissible and could form the sole basis of conviction. The statements were not obtained under duress or coercion and were not retracted at any point. The Tribunal upheld the findings of the Commissioner based on these statements.

Role and Involvement of Each Appellant:
- Sh. Narayan Sharma: Admitted to being a carrier of the gold, receiving Rs. 10,000/- for each transaction. The Tribunal set aside the duty demand of Rs. 11,80,872/- but upheld the penalty of Rs. 1,00,000/-.
- Sh. Pardeep Saini: Assistant Manager (Fire Service) at the Airport Authority of India, involved in the smuggling activities but no direct recovery from him. The penalty was reduced from Rs. 15,00,000/- to Rs. 5,00,000/-.
- Sh. Rakesh Rai and Sh. Vaibhav Rai: Actively involved in the smuggling, with Rakesh Rai providing foreign currency for purchasing gold. The penalty on Rakesh Rai was reduced from Rs. 15,00,000/- to Rs. 5,00,000/-, while the penalty on Vaibhav Rai was upheld at Rs. 5,00,000/-.
- Smt. Sreet Saini: No direct involvement but her vehicle was used in the smuggling. The penalty of Rs. 50,000/- was upheld.

Conclusion:
The Tribunal upheld the absolute confiscation of the gold bar and Indian currency, reduced some penalties, and set aside the duty demand on Sh. Narayan Sharma. The appeals were disposed of in these terms.

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