AI Drafter 
TaxTMI 
TaxTMI 
2024 (4) TMI 82
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....s. 5 lakhs have been rightly imposed on the Appellant under Section 112 (b)(i) of the Customs Act. 2. The facts in brief are that the Appellant - Kogatam Sadik Basha is carrying on jewellery business mainly as goldsmith at Proddutur, YSR Kadapa District under the name and style of M/s Sadik Jewellers. Mr Kaluva Hari Obulesu, the employee of Appellant while carrying 2 gold bits totally weighing 697 gms was intercepted by the Customs Officers of Tirupathi while on train. He was found to be carrying gold. On being asked to produce documents regarding the legal posesseion of gold, he failed to produce any document. In his statement during punchnama proceedings Mr Kaluva Hari Obulesu stated that on 21.02.2020 he collected an amount of Rs. 30 ....
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....over the same to Mr Hari Gopal at Chennai and bring gold from him. On the big gold bit, he has seen the marking engraved being '999'. Further stated that he knows that carrying gold and cash should not be done without proper documents. 4. Statement of appellant - Mr K S Basha was recorded who interalia stated that he had handed over cash of Rs. 30 lakhs to Mr Kaluva Hari Obulesu for purchase of gold from Mr Hari Gopal at Chennai. He also stated that he have earlier also on some occasions purchased gold from Mr Hari Gopal. He had initially asked Mr Hari Gopal to give him Bill for the purchases made but, he denied. He has no option but to purchase gold in cash to compete in the market. Out of his past savings from his goldsmith work and wi....
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.... 7. Being aggrieved, the Appellant is in appeal before this Tribunal. 8. The Learned Counsel for the Appellant inter-alia makes the following submissions: That both the Appellant and his employee at the very initial stage of enquiry/investigation have stated that the gold in question have been purchased at Chennai from Mr Hari Gopal, who has a small jewellery shop on the 1st floor in the building adjacent to Kakada Ram Prasad Sweets and Chats, NSC Bose Road, Sowcarpet, Chennai by making payment in cash. This appellant had immediately appeared before the Customs officers on the very next day of seizure, on 26.02.2020 and had stated that he is a goldsmith by occupation and he is dealing in gold since 2014. He had started his own jewel....
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....s further urged that the appellant due to the COVID pandemic during the relevant time could not make proper representation and or obtained confirmation from the seller of the gold Mr Hari Gopal of Chennai. In spite of proper address and details given of Mr Hari Gopal, Revenue did not make proper effort to contact him and vaguely stated alleging that the Revenue in the course of enquiry could not find Mr Hari Gopal at the address stated by the appellant. In support of his contentions, Learned Counsel states that the details of Mr Hari Gopal engaged in dealing in gold are also available on 'Just Dial' online Directory giving his address as G. Hari Gopal Jewellers at NSC Bose Road, Sowcarpet, Chennai-I. Screen shot from the website of Just Dia....
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....he Customs Act read with the Baggage Rules read with Foreign Trade Policy. Admittedly, the said employee of the appellant have not been intercepted in any customs area, nor have arrived from any foreign country on the said date. The explanation given by the appellant and his employee that they had travelled from home town Proddutur (Renigunta RS) to Chennai and was returning after purchasing gold when he was intercepted, which explanation has not been found to be untrue or wrong. In the facts and circumstances, the provisions of the Customs Act read with rules there under are not attracted. Admittedly, 2 gold bits seized and confiscated have no foreign markings, marked with the marking - 999. It is further urged that the appellant have neve....
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....t could not produce any valid document in support of their claim of purchase from Mr Hari Gopal of Chennai. In this view of the matter, the Revenue have rightly assumed the same to be of smuggled in nature. Reliance is placed on the rulings in the case of Om Prakash Khatri Vs Commissioner [2019 (11) TMI 796 - SC] and also some other rulings. 12. Having considered the rival contentions, I find that admittedly, the seizure of the 2 gold bits is a town seizure at Renigunta Railway Station when the employee of the appellant was on-board the train. Further, admittedly the 2 gold bits totally weighing 697 gms are of irregular shape and size, having no foreign markings. Further, the person who was in possession at the relevant time - Mr Kaluva ....