2008 (9) TMI 817 - AT - Customs

Summary

Issues: Smuggling of gold biscuits, absolute confiscation under Customs Act, validity of confessional statement, entitlement to confiscated gold, applicability of Section 125 of the Act, appropriate penalty imposition.

In this case, 80 pieces of gold biscuits bearing foreign markings were seized from an individual upon landing at Chennai Airport. The individual, Shri Abdul Azeez, confessed to being tasked with collecting the gold biscuits from an aircraft originating from Kuwait and delivering them in Mumbai. The Commissioner confiscated the gold bars under Section 111(d) of the Customs Act and imposed a penalty on Shri Abdul Azeez under Section 112(a) of the Act, as the gold was smuggled into India without duty payment.

In the appeal, Shri Abdul Azeez retracted his confessional statement, claiming lack of evidence supporting the smuggling allegation. He argued that as gold could be imported by eligible passengers, absolute confiscation was unjustified, and he should be allowed to redeem the gold under Section 125 of the Act. Citing a judgment from the High Court of Andhra Pradesh, he contested the necessity of absolute confiscation of foreign-origin gold.

During the hearing, no representation was made for the appellant. The Junior Commission of Customs and Central Excise (JCDR) maintained that Shri Azeez had indeed attempted to smuggle the gold into India from Hyderabad. While upholding the legality of the impugned order, the JCDR acknowledged the cited High Court judgment and deferred the decision to the bench.

Upon review, the Tribunal noted its consistent stance against absolute confiscation of contraband gold, allowing for redemption under Section 125 of the Act. Referring to a previous case, the Tribunal vacated the confiscation order, remanding the case for fresh adjudication. Following the High Court's judgment and Tribunal decisions, the impugned order was vacated, and the appeal was allowed by way of remand. The Commissioner was directed to reexamine the case, ensuring Shri Abdul Azeez receives an effective hearing.