2026 (4) TMI 623

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed by the Learned Customs, Central Excise & Service Tax Appellate Tribunal (CESTAT), East Zonal Bench, Kolkata. 2. The Learned Counsel for the Appellant submitted that the Tribunal, while dealing with a Stay Application involving the seizure of 2755.200 grams of foreign-origin gold, rejected the same without assigning any independent reasons. It is contended that the Tribunal failed to consider the statutory presumption under Section 123 of the Customs Act, 1962, and ignored the Department's findings regarding fabricated documents. 3. Upon hearing the Learned Counsel for the Appellant at length and perusing the Memorandum of Appeal, we found that the matter raised a substantial question of law concerning the adjudicatory obligatio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o reflection in the statutory Ledger Accounts for the financial year 2018-19. 8. While the Adjudicating Authority originally ordered absolute confiscation due to the Respondent's failure to discharge the burden of proof, the Commissioner (Appeals) reversed this finding on November 8, 2024. The Revenue's subsequent motion for a stay before the Tribunal resulted in the summary rejection now under challenge. SUBMISSIONS OF THE PARTIES 9. Mr. Kaushik Dey, Learned Counsel for the Appellant-Revenue primarily relied on the mandatory presumption enshrined in Section 123 of the Act. He submitted that for "notified goods," such as foreign-marked gold, the burden of proving licit importation lies squarely upon the possessor. He argued tha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng the refuted procurement documents or the statutory reversal of the burden of proof under Section 123. In matters involving foreign origin bullion, this presumption is a pivotal legal factor, and the Tribunal's failure to address it indicates a non-application of mind. Such a cryptic approach is not a judgment but a mere fiat, depriving this Court of the opportunity to understand the rationale behind the refusal of a stay in a high-stakes revenue matter. ORDER 13. In view of the foregoing observations, the following order is passed: a) The impugned order dated July 4, 2025, passed by the Learned CESTAT, Kolkata, is hereby set aside. b) The matter is remanded to the Learned Tribunal for a fresh, de novo consideratio....