TaxTMI 
TaxTMI 
2001 (4) TMI 102
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....e the total quantity of the silver seized is 234.904 Kgs? 2.Brief facts are as follows :- On 19-3-1993, acting on information the Officers attached to Intelligence Unit, Custom House, Madras searched the residential premises of one Shri A. Kabeer at No. 22, Vengupillal Street, Egmore, Madras-8 and recovered 42 Nos. gold bars of 10 Tolas each with foreign marketing in a bundle and the petitioner was not in possession of any valid documents to prove the licit origin. The Customs Officers also recovered 6 Nos. Silver ingots with the following markings in ink. 1. 38.425 2. 39.939 3. 39.258 4. 40.421 5. 38.586 6. 38.275 And the said silver ingots were found to be tampered with on top and fresh filling marks were found on them. The Petitioner produced three baggage receipts issued at Madras Airport in respect of the silver bars as if, they all belonged to one K. Mohan, G.T. Kuma....
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....2 in number, weighing 4.893 Kgs. and 6 Nos. of silver ingots weighing 234.904 kgs. were seized from the house of the Petitioner is not in dispute. The Petitioner was not able to produce any valid document, to prove the licit origin and legal acquisition of the gold bars and silver ingots and also has not produced any permit issued by the Reserve Bank of India for the importation of the goods seized from him. Mr. B. Kumar, learned Senior Advocate, representing the Petitioner has submitted that the Petitioner in his statement itself has stated that one Shamsudeen imported the gold bars on 6-2-1993 through Madras Air Port on payment of duty under baggage receipt No. 14920 dated 6-2-1993 and the said receipt was also produced by the Petitioner. The Petitioner also produced the baggage receipts, three in number for the valid import of silver ingots. Possession of Indian currency to any value is not an offence, unless it is not explained when called upon by the Income Tax Authorities. As such, gold and silver seized from the petitioner are not liable for confiscation under Section 111(d) of the Customs Act, 1962 read with Section 3(3) of the Foreign Trade (Development & Regulation) Act, ....
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....Shamsudeen and necessary customs duty was also paid by him and therefore, the show cause notice dated 14-9-1993 is not valid as it was issued based upon the Import and Export Control Act, 1947 and also Section 13 of Foreign Exchange Regulation Act, 1972, which were not in force at the time of seizure of goods. It is further pointed out that import of gold and silver are governed by Import Trade Control Order 29-2-1992. Chapter IVA does not include gold and silver as either specified goods or Notified goods. As such, gold can freely be imported on condition that they have got to be declared and duty paid. As Shamsudeen paid Customs Duty and also the Petitioner produced the duty paid receipt for the import of gold would show that the entire proceedings against the Petitioner are vitiated. 8.It is the contention of the Petitioner that both Suisse and Credit Suisse marked gold bars were manufactured by Valcambi S.A., a leading International manufacturer of gold bars. It is further pointed out from the book referred to above, that in the year 1967, Valcambi S.A. became a Subsidiary of "Credit Suisse". The official stamps of Valcambi S.A. and Credit Suisse have remained unchanged sinc....
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....assengers cannot compel the concerned authorities to write all the contents round in the gold bar in the receipt. Only in the said circumstances, the receipt under which customs duty paid was not properly prepared, for that matter, it cannot be said that gold imported by Shamsudeen and seized from the Petitioner were illicit in nature. Though the said argument of the Petitioner appears to be attractive, it is not convincing for the reason that the person who imports gold bars totalling 42 in number and worth of several lakhs, with an intention to sell for higher price in India, has not demanded the concerned authorities to prepare the custom duty paid receipts according to the contents of the gold bars is not acceptable. A company, may manufacture gold under different names, but the question is whether the receipt obtained is relatable to the gold in hand - the answer will be no. In this connection, it is pertinent to note that at the time of search, the Petitioner was found to be in possession of number of receipts issued by Customs Department in respect of imported gold bars. It is evident that the Petitioner was using such receipts in respect of gold not concerned in the receipt....