2009 (8) TMI 1200 - HC - Central Excise

Summary

Issues involved: Seizure of primary gold of foreign origin, retraction of statement by respondent, investigation by Commissioner of Customs, confiscation of gold, penalty deletion.

In the present case, the respondent was intercepted by police authorities and found in possession of primary gold of foreign origin. Subsequently, the gold was seized by Customs authorities and the respondent was arrested, remaining in judicial custody from 15-5-1998 to 13-7-1998. After release, the respondent retracted his earlier statement about the gold being purchased lawfully, claiming to have bought it from a specific party in Delhi. The Commissioner of Customs investigated and confirmed that the gold in question was indeed purchased by the respondent from the mentioned Delhi party. Based on this evidence, the Tribunal upheld the decision to set aside the confiscation and delete the penalty imposed.

The appellant's counsel argued that the respondent's retraction from his statement after a two-month delay should not be believed. However, it was clarified that the retraction occurred immediately after the respondent's release from judicial custody on 14-7-1998. The Commissioner of Customs' investigation further supported the respondent's claim of purchasing the gold from a specific party in Delhi, rendering the confiscation of the gold as illegal. The Tribunal's decision was based on a proper appreciation of the material evidence on record, without giving rise to any substantial question of law.

Therefore, after considering the arguments presented by the parties and the evidence provided by the Commissioner of Customs, the High Court dismissed the appeal, affirming the Tribunal's decision regarding the confiscation and penalty deletion related to the seized gold.