https://www.taxtmi.com/caselaws?id=793024 Penalty under section 112(b) of the Customs Act cannot be sustained unless the department proves foreign origin and illicit importation of the goods, together with conscious knowledge and a nexus to the alleged smuggling. Here, gold and silver were recovered from a car in which the appellants were travelling, but the evidence did not conclusively establish that the gold was imported from Nepal or otherwise smuggled. The laboratory report showing 98.15% gold content did not support the foreign-origin allegation, and the record did not prove the appellants' conscious involvement. The penalty was therefore set aside. en-us Fri, 05 Jun 2026 00:00:00 +0530 Mon, 08 Jun 2026 08:52:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793024 Penalty under section 112(b) of the Customs Act cannot be sustained unless the department proves foreign origin and illicit importation of the goods, together with conscious knowledge and a nexus to the alleged smuggling. Here, gold and silver were recovered from a car in which the appellants were travelling, but the evidence did not conclusively establish that the gold was imported from Nepal or otherwise smuggled. The laboratory report showing 98.15% gold content did not support the foreign-origin allegation, and the record did not prove the appellants' conscious involvement. The penalty was therefore set aside. Case-Laws Customs Fri, 05 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793024