TaxTMI 
TaxTMI 
2025 (12) TMI 575
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....assed by the Commissioner of Customs (Preventive) [the Commissioner] that imposes a penalty of Rs. 5,00,000/- upon him under section 112(b)(i) of the Customs Act 1962 [the Customs Act]. 2. The appellant claims that he runs a business of dry fruits in Chennai and is also the nephew of Bharat Shantilal Shah. 3. On 19.01.2023, Manish Kumar and Naresh Kumar who were travelling from Chennai to New Delhi in a train were intercepted at Hazrat Nizamuddin Railway Station, New Delhi by officials of the Directorate of Revenue Intelligence [DRI] and a notice under section 102 of the Customs Act was issued to them for search of their luggage. They were then taken for a physical search at the DRI Head Quarters at New Delhi. Thereafter, their statem....
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....sh Kumar on 30.01.2023 retracted from their earlier statements dated 19.01.2023 given to the DRI under section 108 of the Customs Act. They stated that they were hired by one Chenai based businessman named Rinkesh Kumar alias Prem Singh who wanted to send some well-documented gold and some cash to Delhi and had provided them with Rs. 2,40,000/- along with the 7 plus 5 kg gold bars. 6. Manish Kumar, in his letter dated 21.06.2023, apprised the DRI that the said 12 kgs gold bars seized from him and his assistant Naresh Kumar pertains to Mukesh Soni and same was given to them at Chennai by Rinkesh Kumar alias Prem Singh, to deliver at Delhi to a jeweller and all the relevant available documents pertaining to the said gold bars were submitte....
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....e to Sh. Manish Kumar and Sh. Naresh Kumar at his residence in Chennai and he also dropped Sh. Manish Kumar and Sh, Naresh Kumar at Chennai Central Railway Station. Hence, I find that Sh. Krishi D Jain knowingly and intentionally indulged himself in the prejudicial activity of transporting, carrying, and dealing with smuggled gold bars having foreign markings from Chennai to New Delhi for monetary consideration. I find that he is an active member and beneficiary of the syndicate dealing in smuggled gold and gold jewellery made / manufactured from foreign origin smuggled gold. Therefore, I hold that Sh. Krishi D. Jain due to his act of omission and commission in transporting, carrying, and dealing with foreign origin smuggled gold bars rende....
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....as Prem Singh despite the fact that his name had come on record in the retracted statement of Manish Kumar, wherein Manish Kumar stated that the seized gold bars were handed over to him and his assistance Naresh Kumar at Chennai by Rinkesh Kumar alias Prem Singh; (v) The DRI never summoned or investigated Mukesh Soni during the entre investigation, despite the fact that Manish Kumar in his letter dated 21.06.2023 has specifically submitted that the 12 kgs of gold seized actually belongs to Mukesh Soni; and (vi) The DRI relied upon the statements of the noticees, including the appellant, recorded under section 108 of the Customs Act and the same have been solely considered by the Commissioner in fastening the guilt and impo....