2009 (9) TMI 793 - AT - Customs

Summary

Issues involved: Appeal against confiscation of foreign origin gold u/s 123 of Customs Act.

The Appellate Tribunal CESTAT KOLKATA heard an appeal filed by Revenue against an order setting aside the confiscation of 202.240 gms. of foreign origin gold. The case involved the seizure of gold from the Respondent on the belief that it was smuggled into India. The adjudicating Authority initially confiscated the gold and imposed a penalty, which was later set aside by the Commissioner (Appeals) based on the Respondent's production of an invoice from M/s. Jalan Gold & Silver Pvt. Ltd. The Revenue contended that the initial statement made by the Respondent did not mention the purchase from M/s. Jalan Gold & Silver Pvt. Ltd., raising doubts about the authenticity of the invoice. However, the Respondent argued that the invoice was genuine and not an afterthought, supported by the investigation into M/s. Jalan Gold & Silver Pvt. Ltd.'s records showing the issuance of invoices on the relevant dates. The Commissioner (Appeals) found that the Respondent had discharged the burden of proof u/s 123 of Customs Act regarding legal possession of the gold, leading to the dismissal of the Appeal by the Tribunal due to lack of evidence contradicting the authenticity of the invoice.

In conclusion, the Appellate Tribunal CESTAT KOLKATA upheld the decision to set aside the confiscation of foreign origin gold based on the Respondent's ability to prove legal possession through the production of a genuine invoice from M/s. Jalan Gold & Silver Pvt. Ltd., despite the Revenue's doubts regarding the timing of the invoice's preparation. The Tribunal found no infirmity in the impugned order and dismissed the Appeal, emphasizing the importance of meeting the burden of proof u/s 123 of Customs Act in cases involving confiscated goods of foreign origin.