TaxTMI 
TaxTMI 
2019 (11) TMI 851
X X X X Extracts X X X X
X X X X Extracts X X X X
....assed in Appeal No. 126-128/Pat/Cus/Appeal/2015 by the Commissioner (Appeals) of Customs, Central Excise and Service Tax, Patna (for short 'Commissioner (Appeals)'). 3. On 19.04.2014 at 12:15 hours, the SSB officials of Bhelahi intercepted a person near Nahar Chowk, Raxaul with gold biscuits for foreign origin cut into two pieces and also recovered a Nokia mobile phone and Rs. 1,100/-. The SSB officials handed over the intercepted person, namely, Sujit Kumar along with recovered goods to the officials of Custom Division, Motihari. The Custom officers recorded the statement of Sujit Kumar on 20.04.2014 and 21.04.2014 wherein he stated that the seized gold was given to him by Sri Chandeshwar Prasad, brother of Sri Gopal Prasad. 4. Vide letter dated 10.05.2014 addressed to the Commissioner of Customs, Patna, Sri Gopal Prasad claimed ownership of the gold biscuits. He stated that the said gold biscuits were purchased by him from M/s Bhawana International, Chandni Chowk, Delhi on 14.04.2014. 5. A show cause notice was issued to Sujit Kumar, Gopal Prasad and Chandreshwar Prasad. The adjudicating authority confiscated the gold biscuits cut into two pieces and one Nokia mobile pho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er Shri Sujit Kumar and the seized material to the Customs Officials, Motihari, Shri Sujit Kumar, in his statement dated 20.04.2014 and 21.04.2014, stated that the seized gold biscuit was given to him by Shri Chandreshwar Prasad/Shah. The gold was scheduled for delivery to Shri Mahavir Shah/Prasad in his shop M/s Shakuntala Jewellers at Bakergunj, Patna. It is also stated that both Shri Chandreshwar Prasad/Shah and Shri Gopal Prasad/Shah used to carry gold from Nepal to India illegally. Shri Gopal Prasad/Shah by his letter dated 10.05.2014 addressed to the Commissioner of Customs, Patna stated that he was engaged in manufacture and sale of gold and silver ornaments and running a jewellery shop by the name of Saraf Jewellers. He stated that he purchased two pieces of gold bars from M/s Bhawana International, Chandni Chowk, Delhi on 14.04.2014 vide bill no. B1/R1/002 dated 12.04.2014 and B1/R1/003 dated 14.04.2014 respectively. It is also stated that on his instructions his brother Shri Chandreshwar Prasad/Shah handed over the gold to Shri Sujit Kumar for carrying it to Patna to hand it over to Shri Mahavir Prasad/Shah to make gold ornaments in exchange of the said gold. It is catego....
X X X X Extracts X X X X
X X X X Extracts X X X X
....articles. It may be noted that with the development of the technology and electronic revolution, there is a wide scope for verification of accurate inside information of the offenders. The investigation starts from gathering of information which should be cross-checked to ensure its veracity by making independent enquiries. The powers given under Section 108 of the Customs Act, 1962, to summon persons to give evidence and produce documents are wide and general in nature where it discloses the corroborative evidences. In the present case, I find that the investigating officers have not verified the informations contained in the retail invoices produced by the appellants in so far as VAT registration No., PAN No. and VAT payment of M/s. Bhawana International. It has merely proceeded on the basis of the statement recorded by the jurisdictional Customs/Central Excise officers of M/s Bhawana International. It is noted that the said officers had merely recorded the statement of the proprietor of M/s. Bhawana International and no attempt was made to confront the evidence namely retail invoices of M/s. Bhawana International produced by the appellant. Therefore, the purchase docume....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... this matter that the appellant produced the stock Register showing the receipt of the said goods in their stock. In such situation, it is required to verify records and documents of M/s.Bhawana International for corroboration of the documents of the appellant. The customs officers had proceeded on the basis of the initial statement of Shri Sujit Kumar which was retracted from jail. The lower authorities observed that Shri Sujit Kumar in his initial statement admitted the smuggling of the gold. But, after considering the overall facts and circumstances of the case to the extent of purchase documents produced by the appellants such as retail invoices would prevail over the statements, unless the genuinity of the documents is doubted. Hence, I find force in the submission of the ld. Counsel for the appellant. 9. The Revenue in their para-wise comments filed by the ld. AR strongly relied upon the decision of the Hon'ble Supreme Court in the case of CC (Prev.) v. Vijay Dasharath Patel [(2007) 4 SCC 118]. In that case the Hon'ble High Court rejected the appeal filed by the Revenue on the ground that there is no substantial question of law. The Hon'ble Supreme Court held that th....