CESTAT allowed appeals against confiscation of Indian currency...

CESTAT allowed appeals against confiscation of Indian currency and penalty imposition under Sections 121 and 117 of Customs Act, 1962 in gold smuggling case. Appellants were customers who came to purchase gold from main accused when DRI officers were already searching premises. Tribunal held burden of proof under Section 123 was not discharged as no evidence established appellants' knowledge of gold being smuggled or their involvement in conspiracy. Statements of main accused and partners contained no allegations against appellants regarding smuggling knowledge or participation. Digital forensic analysis failed to establish connection proving appellants' awareness of illegal activity. Currency recovered from appellants was brought for legitimate gold purchase, not proceeds of smuggling. Relying on Hindustan Steels precedent, Tribunal emphasized penalty requires deliberate defiance or conscious disregard of obligations, not mere technical breach or bona fide belief.