TaxTMI 
TaxTMI 
2024 (3) TMI 1052
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....lant was brought with his luggage and the three pieces of yellow metal to the international arrival area of the Airport and the officers identified the appellant to the witnesses and showed the Aadhar Card of the appellant No. 236827597427. The appellant, on enquiry, stated that the three cut pieces of yellow metal are gold, which he was carrying to sell the same in Mumbai at a higher rate. Further stated that the said gold is of foreign origin and he bought it from one Mr. Sher Khan, who resided at Hussaini Alam, Hyderabad. 2. The three cut pieces of yellow metal were found to be having markings viz., one piece with marking "sam", one piece with marking "1 KILO GOLD 995.0" and the third piece with marking "sam MELTER ASAYER" with serial No. "BL085755". There were no markings on the other side of all the three pieces. On weighment, the total weight of the three pieces was found to be 1000 gms. The Customs officers got the goods verified by Mr. V. Vijay Kumar, Approved Valuer for Gold and jewellery, who submitted his test report dt. 01.02.2020 certifying that the said three cut metal pieces are of 24 carat gold of 999 purity, having total weight of 1000 gms valued at Rs.42,22,000....
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....Mr. Sher Khan during the last two years. Further stated that he had purchased foreign currency of 60,000 USD in Mumbai @ Rs.72/- per USD. He came to Hyderabad with the said 60,000 USD from Mumbai by bus. He exchanged the said 60,000 USD with Mr. Sher Khan @ Rs.72.40/- per USD. Further stated that he purchased the said gold @ Rs.4065/- per gram and would sell the same at a proft margin of Rs.20/- per gram in Mumbai. Thus, he expects to make profit of Rs.20/- per gram or Rs.20,000/- per KG. Also due to difference in forex rate at Mumbai and Hyderabad, he had made profit of Rs.24,000/-. Further stated that on earlier occasions, after purchasing gold at Hyderabad, he has travelled by bus to Mumbai. Further stated that he sells the gold at Mumbai to one Mr. Arvind, who has a shop by name M/s Arvind Choksi at Zaveri Bazaar, Mumbai, against cash payment. 5. Further stated that he stayed at Hyderabad with his father-in-law and mother-in-law at Kishanbagh, Asad Baba Nagar, Hyderabad. His father-in-law has a garment shop by name 'Taiba the Designer' at Moosa Bowli, Hyderabad. Appellant further stated that he owns a shop by name KGN Stores which sells baby diapers and cosmetics in Mumbai. ....
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.... gold pieces in question at Hyderabad for selling in Mumbai at a profit. The fact recorded in the statement that it was in the knowledge of the appellant that the gold in question was smuggled, was never stated by the appellant and the same was recorded by the officers at their sweet will. The appellant at the time of seizure was not in the mental state to oppose the statement, as prepared by the officers and had signed on the dotted line. Thus, the statement, being not freely given, is not reliable for the purpose of confiscation proceedings. Confession statement given at the time of detention by the Customs officers, being not voluntary, is an inadmissible evidence under Sec 24 read with Sec 26 of the Evidence Act. It is further urged that the gold-cum-jewellery valuer in his Valuation Report dt.01.02.2020 has only certified that the three cut pieces of yellow metal are gold totally weighing 1000 gms having 999 purity. The said valuer has nowhere certified that the pieces of gold are of foreign origin. Thus, Revenue simply on the basis of the markings assumed that the gold pieces are of foreign origin. It is further urged that gold is freely available in India as it is being impo....
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.... (369) ELT 1553 (Tri- Bang)], wherein it was held in a similar matter that it is mandatorily required to be served/delivered SCN to the accused/noticee within six months from the date of seizure/Mahajar. Though the SCN in the said case was issued within six months of seizure but the same having not been served/received by the accused within the said six months, confiscation was held to be not sustainable and gold was directed to be released on payment of applicable Customs duties. 11. It is further urged that Hon'ble Tripura High Court in UOI vs Mandipa Debroy Choudhury [2020 (374) ELT A38 (Tripura)] has held that in the case of town seizure (travelling in domestic sector) on discharge of initial burden of legitimate acquisition, no confiscation can be ordered. It is further urged that after repeal of the Gold Control Act, gold is freely tradeable within India and there is no presmuption of it being smuggled. It is the onus on the Revenue to bring evidence as to the smuggled nature of the gold in question of town seizure. It is also urged that gold is not a prohibited good as defined under Sec 2(33) of the Customs Act. In the facts of the present case, as in the case of town sei....