AI Drafter 
TaxTMI 
TaxTMI 
2020 (12) TMI 427
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.... the gold bars in question was of foreign origin and were smuggled in character, the same were handed over to the Customs for further action. The Customs officers brought Shri Karan Soni to Varanasi for further action and as no documents regarding sale purchase/ transportation of the recovered gold were produced by Shri Karan Soni, and as per his statement dated 12.04.2018, the recovered gold was brought into India from Bangladesh, the same were seized by the officers under a panchnama. Shri Karan Soni in his statement before the officers deposed that he was working for one Shri Prateek Goyal, Proprietor of M/s. Sawaria Seth Jewellers Ghee Mandi, Naya Bazar, Ajmer and at his instructions the gold was brought from one Shri Pradeep of Kolkata for carrying the same to Ajmer. On being questioned as to why the gold bars were not carrying any marking of foreign origin, he stated that same were smuggled from Bangladesh in a clandestine manner and to hide the identity of its foreign origin, gold bars were melted and marks were removed. 3. The Customs officers also checked the mobile of Shri Karan Sone and found one bill N....
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....nversion of absolute confiscation into an option for redemption of gold is not legal and hence same should be set aside. 6. I have heard Shri Bipin Garg, learned counsel appearing for the appellant and Shri Santosh Kumar, Authorised representative appearing for the Revenue. 7. On going through the impugned orders and after appreciating the arguments advanced by both the sides, I find that the gold in question stand seized and confiscated by the Revenue on the ground that the same was of foreign origin and was smuggled into the country. On being questioned, learned Authorised Representative, appearing for the Revenue fairly agreed that there are no marking of foreign origin found on the gold bars. However, he submits that Shri Karan Soni in his initial statement has revealed that the gold in question was actually of foreign origin and was smuggled from Bangladesh but the marking of foreign origin stand removed. However, it is seen that there is no further revelation by Shri Karan Soni as to who has smuggled the gold and who had removed the foreign origin marking and in which manner the sa....
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....sufficient by the Adjudicating Authority for imposing penalty upon Shri Prateek Goyal but the same very statement stand relied upon by him for imposing penalties upon the appellants. This is self-contradictory observations and findings of the Adjudicating Authority. It may not be out of place to mention that non-imposition of penalty upon Shri Prateek Goyal was never challenged by the Revenue and has attained finality. If that be so, by adopting the same reasoning for non-imposition of penalty on Shri Prateek Goyal, imposition of penalties upon the present two appellants are also required to be set aside inasmuch as apart from the retracted statement of Shri Karan Soni, there is no further or additional evidence against the present appellants. 9. Apart from the fact that gold in question was not carrying any marking of foreign origin, it is also seen that there is virtually no evidence of smuggled nature of said gold in question, except for the retracted statement of Shri Karan Soni. Gold can be imported on payment of duty and is not prohibited item. Even if it is assumed that f....
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.... be a gold of foreign origin and smuggled, which was being brought by Shri Karan Soni from Kolkata. The said invoice clearly establishes, beyond doubt that the gold was sent by Shri Lokesh Kumar Choudhary from Ajmer to Kolkata for further delivery, but the same could not be delivered as the owner of shop was not available and Shri Karan Soni was advised to bring back the same to Ajmer. The production of invoice which was infact, found in the mobile phone of Shri Karan Soni itself, leads credence to the appellants' stand that the gold is part of the stock of Shri Ji Jewellers and was sent by Shri Lokesh Kumar Choudhary for sale of the same duly covered by the invoice in question. 12. It is also surprising that even though the Revenue is believing and relying upon the initial statement of Shri Karan Soni, detailing the name and address of the persons at Kolkata from whom the gold in question was received by him, they have not bothered to make any investigation at their end. There is no explanation coming from the Revenue for the said lapse on their part. Once Shri Soni discloses the names of the al....