TaxTMI 
TaxTMI 
2025 (1) TMI 1464
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....I, Shri Firoze Sekh initially denied carrying any contraband goods with him. Later, he confessed that he was in possession of two smuggled gold bars weighing around 999.500 grams each which he had concealed in the pockets of his trousers. He further informed that both the gold bars were of smuggled nature and he had nо documents in support of his possessing/transporting/carrying of the said gold bars. Shri Firoze Sekh informed the DRI officers that the gold bars were smuggled from Myanmar to India through the bordering areas of Manipur and Mizoram. He also handed over his two mobile phones to the officers; one old and used black coloured Micromax X777 mobile phone having IMEI No. 911493756611625 and IMEI No. 911493757016626 fitted with SIM Cards bearing mobile number 7890589802 and one old and used steel grey coloured Mato E4 Plus android mobile phone having IMEI No. 356513084605734 and 356513084605742 fitted with SIM Cards having mobile numbers 8486988416 and 9064304195. 2.1. The said two (02) pieces of yellow colored gold bars weighing 1999.000 grams were seized under Section 110 of the Customs Act, 1962 on the allegation that the said yellow coloured gold bars were smuggl....
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....e was Md. Ajim @ Md. Nurul Ajim Sekh. (ii) He dealt in silver ornaments and jewellery boxes which he procured from Barabazar, Kolkata and sold to different markets at Guwahati, Jorhat, Barpeta areas since 16-17 years. (iii) Shri Firoze Sekh was the son of his elder brother Shri Nur Islam Sekh. Shri Firoze Sekh helped him in his business of carrying and delivering silver ornaments and was paid about 4-5 thousand per month by him. (iv) He did not hand over any gold to Shri Firoze Sekh. Shri Durlav Paul of M/s. Maa Durga Jewellery of Barpteta had handed over the gold to Shri Firoze Sekh. (v) He knew Shri Durlav Paul since last two years in course of delivery of silver jewellery to him. (vi) Shri Durlav Paul had a new phone number 9085492109. (vii) He had never dealt in gold. He only dealt in silver goods. 4. In his voluntary statement recorded on 28.11.2018 under Section 108 of the Customs Act, 1962, Shri Durlav Paul (appellant no. 1) stated, inter alia, that : - (i) He knew Shri Firoze Sekh and Shri Nurul Ajim Sekh since about two years as they used to supply silver jewellery to his shop. (ii) He had handed over the 2 pieces of seized gold to Firoze Sekh for delivery....
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....e had credit note as supporting document of seized gold. (iv) He had purchased 2480 gms. of new gold ornaments from one M/s. H.K. Jewellers, 23B, Kalakar Street, Kolkata 700007 vide their Invoice No. 740 dated 19.06.2018. But as he purchased the entire gold ornaments on credit and M/s. H.K. Jewellers agreed to receive gold in bullion form in lieu of cash payment, he was sending the said two gold biscuits to the said M/s. H.K. Jewellers through Shri Firoze Sekh. Along with the said two pieces of gold, he handed over the original copy of Tax Invoice No 37 dated 26.06.2018 to Shri Firoze Sekh. He cannot say why the copy of the said Tax Invoice was not recovered by the DRI officers from Shri Firoze Sekh along with the said seized gold. It might so happen that Shri Firoze Sekh threw away the said original copy of Tax Invoice no. 37 dated 26.06.2018 en route from Barpeta to New Jalpaiguri. Till date he never inquired from him about the said Tax Invoice. (v) During the period from 04.06.2018 to 23.06.2018 he has purchased approximately 2400.000 gms. of old gold ornaments from different persons of Assam and the same is recorded in his Purchase and Sale Register of old gold for the peri....
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....brown colored self-adhesive tapes used for wrapping the two (02) pieces of smuggled foreign origin gold bars shall not be confiscated under section 119 of the Customs Act 1962; (iii) Penalty shall not be imposed upon Noticee-1, Noticee-2, Noticee-3 and Noticee-4 under Section 112(a) &/or 112(b) of the Customs Act, 1962 and Noticee-3 & Noticee-4 u/s 114AA of the Customs Act, 1962 for their act of omission and commission, as discussed hereinabove. 7. Thereafter, the matter was adjudicated and vide the Order-in-Original No. 03/ADC(P)/CUS/WB/20-21 dated 08.07.2020, the gold in question was absolutely confiscated. Penalties of Rs.6,00,000/- (Rupees Six Lakhs only) under Section 112(b) and Rs.6,00,000/- (Rupees Six Lakhs only) under Section 114AA of the Customs Act, 1962 was imposed on the appellant no. 1 viz. Shri Durlav Paul. Penalties of Rs.6,00,000/- (Rupees Six Lakhs only) under Section 112(b) and Rs.6,00,000/- (Rupees Six Lakhs only) under Section 114AA of the Customs Act, 1962 was also imposed on the appellant no. 2 viz. Shri Kailash Kumar Jora. 7.1. The appellants challenged the said order before the Ld. Commissioner of Customs (Appeals), Custom House, 15/1, Strand Road, Kolk....
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....ded over to him by Shri Durlav Paul (appellant no. 1 herein) for delivering the same to M/s.H.K. Jewellers, Kolkata (appellant no. 2). 11.2. We observe that when the appellants came to know about the seizure of the gold, they came forward and produced all the documents regarding ownership of the said gold. For better appreciation of the facts, the invoice dated 19.06.2018 issued by M/s. H.K. Jewellers, owned by Shri Kailash Kumar Jora (appellant no. 2 herein), wherein M/s. H.K. Jewellers has sold the jewellery to M/s. Maa Durga Jewellery, owned by the appellant no. 1, Shri Durlav Paul, for converting the same into gold bars, is extracted below : - 11.3. After conversion into gold bars, M/s. Maa Durga Jewellery has again sent the same to M/s. H.K. Jewellers by way of issuance of the tax invoice dated 26.06.2018. The said tax invoice is also extracted below for appreciation of the facts : - 11.4. From the above, we find that both the invoices are G.S.T. paid invoices. The appellants have also produced the certificate showing the payment of appropriate Tax / G.S.T. on the said invoices. Further, Form GSTR-2A is also placed on record. Further, Form GSTR 1 submitted by the appellants....