CESTAT dismissed the Revenue's appeals and upheld the...

CESTAT dismissed the Revenue's appeals and upheld the Commissioner (Appeals)' order setting aside confiscation of foreign-marked gold, silver bullion and currency under Section 111 of the Customs Act, 1962. The Tribunal held that the noticees had produced purchase invoices, accounted entries, and a Chartered Accountant's certification evidencing lawful procurement and tax-paid nature of the gold and silver. Revenue failed to discharge the burden under Section 123 or to rebut the documentary and accounting evidence with any cogent material, relying instead on suspicion and past conduct of co-accused. CESTAT held that mere suspicion cannot replace proof and found no basis to treat the seized currency as sale proceeds of smuggled bullion.