2013 (9) TMI 247

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ee appeals are arising out of same order of the Commissioner (Appeals) No. 14/2009 dated 22.06.2009 by which the order of the original authority confiscating gold and imposing penalties on three of the respondents stand set aside. 2. Heard both sides. 3. The relevant facts in brief are that     (a) Shri Ganta Ramachandra Rao and Shri Vegi Ramamohana Rao were intercepted by the Police on 18.03.2008 at Jonnada, a place between Narasapur and Mandapeta, and 44 gold bars of 100 grams each and gold mound weighing about 481.52 grams and small piece totally weighing 15.08 grams, (totally 4896.60 grams) were seized.     (b) Subsequently, on order dated 25.03.2009 Mandal Revenue Officer (MRO), the seized gold was han....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... grounds of appeal, submit that the documents produced on behalf of the respondents to claim licit nature of the confiscated gold do not correspond to the material facts available on the mound of gold and therefore, the Commissioner erred in setting aside the order of confiscation. Though, Commissioner (Appeals) held that Section 123 of the Customs Act was applicable, he has wrongly given the benefit to the respondents. In this regard, he relies on the decision in the case of Bharat Kumar Jaini Vs. CC, Jaipur [2007 (217) E.L.T. 42 (Tri.-Del.)]. 5. Learned advocate appearing for the respondents strongly defends the order of the Commissioner (Appeals) with the following submissions:     a) The respondent Shri Keerthi Kumar Ja....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed over to the customs authorities in pursuance of order of the Mandal Revenue Officer concerned. On the basis of investigations, 44 bars of gold stand released to Shri Keerthi Kumar Jain. This indicates the status of the said Keerthi Kumar Jain as a dealer of foreign gold. The claim of the respondent Shri Keerthi Kumar Jain was that he has procured foreign marked gold from a dealer in Secunderabad who has purchased from MMTC and also from State Bank of India, Hyderabad. The disputed quantity involved is very small quantity when compared to 44 bars of gold which stands released based on the documents submitted and claims made by Shri Keerthi Kumar Jain. As already mentioned, the gold has been taken over, on the orders of the Mandal Revenue ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ry substantial portion of the seized gold i.e. 44 gold bars had been proved to be correct, by the revenue, resulting in release of the same to the appellants at the investigation stage itself. As already discussed above the contention of the appellants regarding the gold mound and the piece of gold remain uncontroverted and hence cannot be merely brushed aside on the strength of an observation made by an assayer. Hence, to me, the defence adduced by the appellants is more probable given the fact that credentials of the appellants have been proved beyond all doubt in respect of a very significant portion of the gold seized." 6.3. No valid reasons have been adduced to doubt the correctness of the above findings especially when it has been he....