TaxTMI 
TaxTMI 
2023 (11) TMI 425
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....strict. His Employee Shri Pachipulusu Venkata Nageswara Rao ( P V N Rao) while carrying 22 numbers of gold biscuits of 100 gms each, total weighing 2200 gms, the Police Department had intercepted him at Y-Junction of Yerrraguntla on 21-04-2019. Subsequently, on the information from Electronic Media, the Asst Commissioner of Customs, Customs Division, Tirupati, requested the Inspector of Police, Yerraguntla vide his letter dated 22-04-2019 to handover the seized gold. Thereafter the impugned goods had been handed over to a team of Customs authorities on 27-05-2019. It is worthwhile to note that the Inspector of Police has handed over goods only on the Instructions of Asst Commissioner of Income Tax, Investigation, Tirupati. Mitta Sunil Kumar visited the Customs Preventive Division, Tirupati claiming the ownership of the seized gold of 2200 gms (22 numbers of gold biscuits of 100 gms each) and submitted the copy of the Invoice bearing No. 00601, dated 20-04-2019, as a proof of purchasing Legitimate Gold. The said copy of the Invoice has been submitted to this Bench as Appendices, as a part of Additional information and also explained how he made payments towards the purchase of the l....
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....umber is AOCPM6338P. His average turnover is about 40 lakhs during the last 3 years. He is dealing in gold and silver for the past 10 years. He has purchased 22 numbers of gold biscuits of 999 purity from Sai Tirumala Jewellers, Bangalore on 20.04.2019 on credit basis. Further stated that P V Nageswara Rao is his employee who has been working with him for the last 2 ½ years. The said employee was intercepted by the police on 21.04.2019 and where as during frisking they have seized the gold biscuits which he had entrusted for carrying to shop. As the purchase bill was available with him, his employee could not show the bill to the police. Further stated that he is the owner of the seized gold, being 22 numbers of gold biscuits totally weighing 2200 gms which was purchased on credit basis for which payment is made within 15 days to Sai Tirumala Jewellers, Bangalore. So far he has paid Rs.62,45,000 (Rs.36,00,000 on 03.05.2019 and Rs.26,45,000/- on 20.05.2019) from his bank account with Kotak Mahindra Bank being account No. 3311882372, to the bank account of the seller - Tirumala Jewellers with Karur Vyshya Bank, Bangalore. He has been visiting Bangalore with respect to his busi....
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....oices aforementioned. However the gold sold by him is by way of genuine transaction wherein he has received the sale consideration through bank challan and have also issued proper invoices charging GST. 6. He further admitted that there is some mis match with respect to the serial numbers on the gold biscuits which have been seized. He further stated that he has not mentioned the engraved serial numbers in the invoice for the gold biscuits, sold to M. Sunil Kumar. 7. As there appeared some infirmities to the Revenue Department, thus arrested the appellant M. Sunil Kumar on 02.07.2019 who was subsequently enlarged on bail. 8. In the course of further investigation, Revenue made enquiry regarding source of the seized gold biscuits. Summons were issued to Shri Akshay Agadia of Infinity Jewellers & Bullion, Bangalore. Mr Akshay Agadia in his statement recorded on 08.07.2019 interalia stated that vide invoice No. 207 dated 17.04.2009 and invoice no. 229 dated 20.04.2009 they have sold gold to Shri M R Prakash, Owner of Sai Tirumala Jewellers. He also produced his purchase invoice No. KA0119TI00000044 dated 20.04.2019 issued by MMTC Pamp India Pvt Ltd., in support of his purchas....
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....r staff of M Sunil Kumar - appellant on the same day. The said 35 gold biscuits were released soon after seizure as Revenue found that the serial numbers engraved on the gold biscuits tally with the serial numbers mentioned on the invoice produced, in respect of the purchase by the appellant. It is further evident from the facts available in the show cause notice, particularly the statement of Chetan Kumar Jain, Manager of DP Gold Pvt Ltd., Chennai, wherein they have stated that they had purchased gold biscuits totalling 40 kg having engraved serial numbers from 3821401- 3821800 from MMTC-PAMP India Pvt Ltd., New Delhi. Thereafter, they have been selling in retail. Admittedly the 22 gold biscuits seized & confiscated, tally with the serial numbers of gold biscuits purchased by DP Gold Private Ltd., Chennai from MMTC-PAMP. Thus, the allegation of the Revenue that gold biscuits being smuggled in nature falls flat, in view of the glaring facts on record. The Court below have erred in ignoring such facts on records and have wrongly confiscated the gold in question absolutely, and also erroneously imposed penalties on these appellants. 16. Learned Advocate further urges that as the n....