AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 790
X X X X Extracts X X X X
X X X X Extracts X X X X
....31.03.2022 and are arising out of impugned common Order-in-Appeal No.121 & 122CUS/APPL/LKO/2023 dated 02.02.2023 passed by Commissioner (Appeals) Customs, GST & Central Excise, Lucknow. 2. The Present case stems from the apprehension of two individuals being Amit Kumar Soni and Shahid Husain at Deen Dayal Upadhyaya Railway Station on October 5, 2020, acting upon specific intelligence so developed by the Directorate of Revenue Intelligence [DRI] . Thereupon, a search of the apprehended individuals yielded 2,998.050 grams of gold valued at Rs.1,50,80,192/-, and, thereafter, inquiry revealed that the purported owner of the seized consignment was one Shri Rajesh Kumar. Subsequently, statements recorded from the co-accused implicated the Appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ar Gupta under Section 117 of the Act. Subsequently, the Appellants filed appeals before the learned Commissioner of Customs, who, by his order dated 02.02.2023, upheld the penalties imposed. Hence, the present appeals before the Tribunal. 3. Learned Advocate appearing on behalf of the Appellants submitted that mere non-attendance at summons cannot by itself establish culpability, nor does the Appellants' inability to appear demonstrates any deliberate evasion, consequently, the invocation of Section 117 of the Customs Act is manifestly unwarranted. Further, it is pertinent herein to be mentioned that the non-appearance arises from bona fide circumstances rather than willful default as such, penal consequences cannot follow. The l....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ogical correlations between co-accused statements and phone-data inferences, whereas penal liability under the Customs Act requires clear, cogent and objective evidence. Accordingly, the quantum of penalty cannot stand when it is grounded upon speculative reasoning divorced from any concrete evidentiary nexus linking the Appellants to the smuggling operation. He submitted that the learned Commissioner's order dated February 2, 2023, errs in asserting that the Department has discharged its primary onus merely by recording statements, without appreciating that in penal proceedings, allegations must be established beyond reasonable doubt, absent incontrovertible proof, the Appellants are entitled to the benefit of every reasonable doubt, a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and prayed that the appeals filed by the Appellants, being devoid of merits, may be dismissed. 6. Heard both the sides and perused the appeal records. 7. I find that this Bench of the Tribunal in Customs Appeal No.70179/2023 & Customs Appeal No.70110/2024 vide the Final Order No.70211-70212/2025 dated 23.04.2025 allowed the appeals and set aside the penalties imposed. The confiscation of gold and Indian currency was also set aside by observing as under:- "9. From the case record, we know that confiscated gold was having purity less than 99.9%. This Tribunal in its Final Order dated 17.04.2024 in the case of Neeraj Agarwal and others has held in paragraph 12 that gold of foreign origin has purity of 99.9%. By relying on the sa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in nature nor was liable for confiscation. The Indian currency was confiscated under Section 121 of the Customs Act, 1962 which provide for confiscation of sale proceeds of smuggled goods. It is now established that the gold which was seized by interception or which was seized at the residence of Rajesh Kumar was not smuggled in nature because it was not liable for confiscation therefore the question of any smuggling involved in the whole proceeding does not arise. Revenue has also not established as to the said Indian currency being accumulated by sale of which smuggled goods and by sale to whom and when. Therefore, we hold that Revenue could not make out a case that either 2998.50gms of gold nor two samples of gold weighing 4.9 and 4.7....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion where as in the present proceedings no such option was given. For said reasons also the order passed for confiscation of gold and Indian currency is not sustainable. 10. For bringing more clarity to the issue, we set aside confiscation of subject gold weighing 2998.50 grams and 4.9 and 4.72 grams. We set aside confiscation of Indian currency of Rs. 1,01,25,600/-. We set aside imposition of penalty of Rs. 20,00,000/- imposed on Shri Rajesh Kumar and we set aside penalty of Rs. 3,00,000/- imposed on Shri Parvez Khan. In above manner, we allow both the appeals with consequential relief to both the appellants." 8. The seized gold and the Indian currency were held not liable for confiscation. I note that Section 112(b) deals with....