Reassessment under s.148A held valid; s.69 additions totaling Rs.7,00,000 deleted after acceptable contemporaneous explanations for property investmen...
Adjudication set aside; Rule 9 valuation based on internet engineer report quashed for Rule 3(4) non-compliance; Section 138B cross-examination requir...
CESTAT allowed the appeal, set aside the confiscation and penalty. The tribunal held that Customs officers failed to form an independent reasonable belief of smuggling under s.110(1) CA 1962, having merely adopted CISF's initial detention; thus the seizure was arbitrary. The appellant subsequently produced verifiable documents proving domestic procurement and conversion of old jewellery into seven gold bars and silver, discharging the evidential burden under s.123 CA 1962. No cogent material established foreign origin or illicit importation of the bars; foreign markings alone were insufficient. Consequently the order of absolute confiscation under ss.112(a) and 112(b) and the attendant penalty were unsustainable and were set aside.
CESTAT allowed the appeal, set aside the confiscation and penalty. The tribunal held that Customs officers failed to form an independent reasonable belief of smuggling under s.110(1) CA 1962, having merely adopted CISF's initial detention; thus the seizure was arbitrary. The appellant subsequently produced verifiable documents proving domestic procurement and conversion of old jewellery into seven gold bars and silver, discharging the evidential burden under s.123 CA 1962. No cogent material established foreign origin or illicit importation of the bars; foreign markings alone were insufficient. Consequently the order of absolute confiscation under ss.112(a) and 112(b) and the attendant penalty were unsustainable and were set aside.
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