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Tribunal Confirms Gold Confiscation, Reduces Customs Penalty from Rs. 20 Lakhs to Rs. 2 Lakhs Due to Appellant's Finances. The Tribunal upheld the absolute confiscation of 17 gold bars of foreign origin, as the Appellant did not contest this decision. However, the penalty ...
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Tribunal Confirms Gold Confiscation, Reduces Customs Penalty from Rs. 20 Lakhs to Rs. 2 Lakhs Due to Appellant's Finances.
The Tribunal upheld the absolute confiscation of 17 gold bars of foreign origin, as the Appellant did not contest this decision. However, the penalty under Section 112(b) of the Customs Act, 1962, initially set at Rs. 20 Lakhs, was deemed excessive and reduced to Rs. 2 Lakhs due to the Appellant's financial situation. The Appellant, having already paid Rs. 1.5 Lakhs, was instructed to pay the remaining Rs. 50,000 by a specified deadline. The Appeal was resolved with these adjustments.
Issues: The issues involved in this case are the confiscation of seized gold bars of foreign origin and the imposition of a penalty under Section 112(b) of the Customs Act, 1962.
Confiscation of Gold Bars: The Appellant was intercepted in Kolkata carrying 17 pieces of gold of foreign origin. The Adjudicating Authority ordered the absolute confiscation of the gold bars weighing 3033.8 grams valued at Rs. 90,71,062. The Appellant did not claim ownership of the gold bars and stated they were given to him for melting purposes. The gold bars had foreign markings, and the Appellant failed to produce any licit documents for them. Despite not disputing the confiscation, the Appellant contested the penalty imposed.
Penalty Imposition: The Appellant's representative argued that proper investigations were not conducted to locate the actual owner of the gold bars. The Appellant, a small-time gold melting person, was burdened with a penalty of Rs. 20 Lakhs, which was deemed excessive given his financial circumstances. The penalty was reduced to Rs. 2 Lakhs considering the Appellant's situation. The Appellant had already deposited Rs. 1.5 Lakhs and was directed to pay the remaining balance of Rs. 50,000 by a specified date.
Conclusion: The Tribunal affirmed the absolute confiscation order as the Appellant did not challenge it. The Appeal was disposed of with the reduced penalty amount and payment deadline specified for the Appellant.
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