2024 (3) TMI 412 - AT - Customs

Smuggling of gold - Imposition of penalties u/s 112 - HELD THAT - We find that the appellants have never admitted that they were having any knowledge of smuggling of gold. The trolley bags were exchanged by Shri Pahalad Soni and Chhotu, which were having gold in the handle. They were bonafidely carrying the bags. Therefore, as they have no knowledge about the gold concealed in the bags and these facts are not disputed by the Revenue. We also find that that the appellants had never admitted that they have any knowledge during carrying of the gold in the bags and Shri Pahalad Soni, who is held to leader of the group, has admitted that he has changed their bags by the trolley bags which are carrying gold. Thus, the appellants are totally innocent in the said act of smuggling of gold by Shri Pahalad Soni or Chhotu. Therefore, the penalties on the appellants are not imposable. Accordingly, the penalties imposed on the appellants are set aside and the appeals are allowed with consequential relief, if any.

Summary

Issues Involved:
Appeal against imposition of penalties under Section 112 of the Customs Act, 1962.

Summary:
The case involved an incident where individuals were intercepted at a railway station with smuggled gold concealed in trolley bags. The appellants denied knowledge of the smuggling operation, stating that the bags were exchanged by another individual. The appellants were detained and penalties were imposed on them. However, the Tribunal found that the appellants were innocent as they had no knowledge of the gold hidden in the bags. The leader of the group admitted to changing the bags with the ones containing gold. Therefore, the penalties imposed on the appellants were set aside, and the appeals were allowed.

The facts of the case revealed that the individuals were approached by a person named Chhotu to carry smuggled gold from Dimapur to Kolkata. The individuals, including the leader of the group, agreed to transport the gold in trolley bags. The gold bars were concealed in the handle bars of the bags and wrapped in carbon papers and tapes. The individuals were intercepted at a railway station, and the gold bars were discovered during inspection. Statements were recorded from the individuals, indicating their involvement in transporting the gold without knowledge of its presence in the bags.

The Tribunal considered the circumstances and found that the appellants were not aware of the smuggling operation orchestrated by Chhotu and the leader of the group. Despite being involved in carrying the bags, the appellants maintained their innocence regarding the contents of the bags. The Tribunal noted that the appellants did not admit to having knowledge of the gold concealed in the bags. As a result, the penalties imposed on the appellants under Section 112 of the Customs Act, 1962 were deemed unjustifiable.

In conclusion, the Tribunal ruled in favor of the appellants, setting aside the penalties imposed on them. The Tribunal found that the appellants were innocent bystanders in the smuggling operation and had no involvement or knowledge of the gold concealed in the trolley bags. The appeals were allowed, providing consequential relief to the appellants.