TaxTMI 
TaxTMI 
2025 (5) TMI 1627
X X X X Extracts X X X X
X X X X Extracts X X X X
....6,87,350/- seized on 20.02.2014 and 21.02.2014 from Shri Aman Kumar [Aman] and Shri Shyam Sundar [Shyam] respectively along with the goods used to conceal the gold. Silver Ingots weighing 3.184 kg. valued at Rs. 1,52,196/- seized from the premises of M/s Kiran Forex, Chandani Chowk, New Delhi were also confiscated under section 111 of the Customs Act, 1962 [Act]. Further, Indian currency amounting to Rs. 10,79,300/- seized from the premises of M/s Kiran Forex was also confiscated under section 121 of the Act as sale proceeds of the smuggled goods. Further penalty of Rs. 95,00,000/- was imposed on Shri Rahul Khanna [Rahul] under section 112 of the Act. Penalty of Rs. 45,00,000/- was imposed on Shri Shyam and penalty of Rs. 45,00,000/- was imposed on Aman under the same section. 2. We have heard Ms. Mrinalini Sharma, learned counsel for Shri Rahul Khanna and Shri M. Thirupathi Reddy, learned counsel for Shri Aman Kumar and Shri Shyam Sundar and Shri Rakesh Kumar, learned authorized representative for the Revenue and perused the records. 3. Learned counsel for Shri Rahul Khanna stated that he was not contesting the confiscation of the gold in the impugned order and was only contesti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ollect gold from Babulal Bhai of Kolkata. In other words, in their statements both Aman and Shyam indicated that they were carriers employed by Rahul to bring smuggled gold from Babulal Bhai of Kolkata and hand it over to Rahul. Both said that Rahul was the owner of M/s Kiran Forex Pvt. Ltd. (iii) In follow up searches conducted at M/s Kiran Forex Pvt. Ltd. and M/s Mahalaxmi nothing incriminating was recovered at the premises of Mahalaxmi Traders. From M/s Kiran Forex Pvt. Ltd., Indian currency amounting to Rs. 10,79,300/- and three pieces of silver weighing 3.184 kg. were recovered and seized on the belief that they were sale proceeds of smuggled gold and, hence, were liable for confiscation. (iv) Rahul was summoned and his statement was recorded. In addition to his personal details, he said that he had started investing in MEX commodity betting and incurred losses when an agent in Kucha Mahajani, Chandni Chowk, New Delhi suggested to invest money in smuggled gold as there was a big price difference between domestic price and international market price of gold. The agent also gave him the mobile number of Babulal Bhai of Kolkata. He contacted Shri Babulal Bhai on his mobile and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed 14.08.2014, but a set of Relied Upon Documents were again being sent for information and record. However, on 09.06.2017 Rahul again contested before the Adjudicating Authority that certain documents were not received from DRI. Accordingly, a letter was sent to DRI to supply documents to the noticee and send a copy of the acknowledgement. DRI, in its letter dated 24.07.2017 addressed to Rahul with a copy to the Adjudicating Authority sent copies of the earlier letters dated 14.08.2014 and 25.04.2017 by which all RUDs were supplied to Rahul. However, certain documents which were sought again were supplied to Rahul. Rahul sent another letter dated 14.08.2017 claiming that some documents were withheld by the DRI, therefore, the Adjudicating Authority sent another letter to DRI requesting them to take suitable action. DRI, by letter dated 08.12.2017, explained that it had not withheld any documents and the facts of the case relating to the show cause notice and asked him to clarify which documents are yet to be received. By a letter dated 17.12.2018, DRI informed the Adjudicating Authority that no RUDs pertaining to the case were with it and all documents were supplied to Rahul with ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and Shyam said that both were contesting only the penalties imposed on them and nothing else. On being asked about role of Aman and Shyam, learned counsel said that the gold was seized from them at the New Delhi Railway Station when they arrive by Sealdah Rajdhani Express. Smuggled gold was recovered from them. No other submissions were made by the learned counsel. Submissions on behalf of the Revenue 9. Learned authorized representative for the Revenue made the following submissions : (i) When asked, both Aman and Shyam had stated that the gold belonged to Rahul for whom they were carrying it from Kolkata. Both said that they had brought it from Babulal Bhai of Kolkata. Both said that they were getting paid Rs. 4,000/- per trip + railway tickets. (ii) When Rahul was summoned, he also confirmed that he would get smuggled gold from Babulal Bhai from Kolkata and sell it in Kucha Mahajani, Chandni Chowk, New Delhi. He also provided details which were in his exclusive knowledge such as that he had entered into an agreement/understanding with Babulal Bhai according to which he would send cash to him and get gold. Since it was a risky venture, he needed some trusted persons. He as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng only confiscation of the cash seized from M/s Kiran Forex Pvt. Ltd. and the confiscation of the silver and the penalty imposed on him. As far as the silver is concerned, even before us, the submission of learned counsel for Rahul is that it does not belong to M/s Kiran Forex Pvt. Ltd. and it also does not belong to Rahul. It is the submission that it belongs to wife of Rahul. The case of the department is that this silver was found along with the cash at M/s Kiran Forex Pvt. Ltd. and is suspected to be the sale proceeds of the smuggled gold and, hence, was liable for confiscation. There is no claim whatsoever by the wife of Rahul. We, therefore, find that neither Rahul nor M/s Kiran Forex Pvt. Ltd. have any locus standi to claim the seized silver. 12. As far as the seized currency is concerned, the submission of the learned counsel is that it belonged to M/s Kiran Forex Pvt. Ltd. and it was a part of its business proceeds. The case of the department is that it was sale proceeds of smuggled gold. 13. We find that Section 121 of the Customs Act reads as follows :- "121. Confiscation of sale-proceeds of smuggled goods. - Where any smuggled goods are sold by a person having kn....