TaxTMI 
TaxTMI 
2018 (12) TMI 1371
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....holder of British pass-port entered India on 2.4.2014 from Nepal through Sonauli Boarder. The SSB Officers at Sonauli conducted search upon him and found 4320 gms of gold of 999.9 purity of foreign origin worth Rs. 1,09,12,590/- in his pockets of jeans, jacket and shoes. The gold so found was seized and he was produced before the Custom Officers along with the gold at land Customs Station Sonauli. His statement was recorded. He was issued a show cause notice on 27.8.2014 informing him that he was trying to smuggle gold of third country origin into India. The import of such gold is prohibited vide notification no. 9 of 1996 Customs dated 22.1.1996 and therefore why the same may not be confiscated under Section 111(d) of the Act. In pursuanc....
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....ction 77 of the Act. He was not asked to make a declaration which is a duty caste upon the Custom Officer. The seized gold was not a prohibited item and in this regard he placed reliance upon a notification dated 17th March 2012 issued under Section 25 (1) of the Act. He also contends that the seized gold was not an item which was exported to Nepal so as to apply notification dated 22.1.1996. Section 80 of the Act provides for temporary detention of baggage. It reads as under:- 80. Temporary detention of baggage:- "Where the baggage of a passenger contains any article which is dutiable or the import of which is prohibited and in respect of which a true declaration has been made under section 77, the proper officer may, at the request o....
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....ned those functions by the Board or the Principal Commissioner of Customs or Commissioner of Customs. In other words, a declaration under Section 77 of the Act has to be made by the owner of the baggage before the Custom Officer. In the instant case respondent had entered India from Nepal through the land route via Sonauli Border. He was caught by the SSB Officer on 2.4.2014 with the contrabaned bullion and was handed over to the Custom Officers of the land Custom Station Sonauli. His statement under Section 107 of the Act was recorded on 3.4.2014 before the Custom Officer. In his statement recorded in the presence of the two independent witnesses he stated that he is resident of London. He came to India from Nepal and the gold was recover....
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....no point of time respondent stated that the above statements were recorded in duress and that it was not of his own free will. The respondent at no point of time either made any declaration as contemplated by Section 77 of the Act before the Custom Officer nor made any request that he intended to make any such declaration despite being presented before the Custom Officers and opportunity offered for the purpose. It is not the case that full and complete statement as made by respondent was not recorded. In view of the aforesaid facts and circumstances, as the respondent was duly produced before the Custom Officer and his statement was recorded without any duress but still he failed to make any declaration under Section 77 of the Act, it is ....
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....lete violation of the aforesaid notification read with Section 11 of the Act and as such is nothing but smuggling of gold. The notification No. 11/2012-Customs dated 17th March 2012 relied upon by the counsel for the respondent is one which has been issued under Sub-section (1) of Section 25 of the Act exempting certain goods of the specified nature from duty. The said notification exempts the gold of the specified nature upto the limit of 10 Kg. from duty. The aforesaid notification is simply a notification exempting gold from the payment of duty. It does not over ride the prohibition which has been imposed by the notification dated 22nd January 1996. The aforesaid notification in no way supersedes or negates the notification dated 22nd ....