CESTAT examined the seizure of 3998.83 grams of gold from two...

CESTAT examined the seizure of 3998.83 grams of gold from two individuals traveling by bus, determining the legality of the customs action. The tribunal found the department failed to establish reasonable belief for seizure under Section 110 of Customs Act, 1962. Critical procedural deficiencies were identified, including non-compliance with Section 138B and lack of concrete evidence proving smuggling. The absence of foreign markings on gold and failure to substantiate smuggling claims led the tribunal to conclude that the seizure was unsustainable. The burden of proof under Section 123 was not effectively discharged by the revenue authorities. Consequently, the tribunal allowed the appeal, quashing the seizure and potential penalties.