2001 (7) TMI 183 - AT - Customs

Summary

Issues Involved:
1. Confiscation of gold and Maruti Car.
2. Imposition of personal penalties.
3. Legality of the gold acquisition.
4. Allegations of involuntary statements and torture.
5. Verification of the gold's origin and transaction details.
6. Confiscation of gold recovered from Shri Subhas Chandra Saha.

Summary:

Confiscation of Gold and Maruti Car:
The Commissioner of Customs, Calcutta, ordered the absolute confiscation of 16 pieces of gold bars and 4 pieces of gold strips of foreign origin recovered from a Maruti Car belonging to Shri Samir Kr. Ray. The Maruti Car was also confiscated with an option to redeem it on payment of a redemption fine of Rs. 20,000/-.

Imposition of Personal Penalties:
Personal penalties of Rs. 20,000/- each were imposed on Shri Samir Kumar Ray, Sri Binay Kumar C. Zaveri, and Sri Mansukhlal T. Bavishi, and Rs. 10,000/- on Shri Subhas Chandra Saha.

Legality of the Gold Acquisition:
Shri Samir Kumar Ray claimed that the gold bars were legally purchased from Shri Mansukhlal T. Bavishi, a bullion dealer in Mumbai. The defense was supported by statements from representatives of M/s. Mansukhlal T. Bavishi, who confirmed the sale of 21 pieces of gold biscuits to Shri Ray. The gold was allegedly imported legally by Md. Ismail under a baggage receipt, which was verified and found genuine.

Allegations of Involuntary Statements and Torture:
Shri Ray contended that his initial statement about the smuggled nature of the gold was involuntary and extracted under physical and mental torture by Customs officers. This claim was supported by an order from the Chief Judicial Magistrate for medical treatment of Shri Ray due to injuries from alleged assault.

Verification of the Gold's Origin and Transaction Details:
The adjudicating authority did not accept the appellant's defense, citing missing links in the transaction chain, such as the non-identification of M/s. Pankaj Jewellers and the non-traceability of Md. Ismail. However, the Tribunal found sufficient evidence of the legal acquisition of the gold, including bank statements and the residential address of the proprietor of M/s. Pankaj Jewellers. The Tribunal noted that the liberalization of import policies had made foreign-marked gold widely available in the Indian market.

Confiscation of Gold Recovered from Shri Subhas Chandra Saha:
Six pieces of gold biscuits were recovered from the rectum of Shri Subhas Chandra Saha. He denied the recovery and claimed false implication by Customs officers. However, the Tribunal upheld the confiscation and personal penalty, as the recovery was substantiated by a Panchanama and no contrary evidence was provided by Shri Saha.

Conclusion:
The Tribunal set aside the confiscation of 21 pieces of gold biscuits belonging to Shri Samir Kumar Ray, the confiscation of his Maruti Car, and the imposition of personal penalties on Shri Ray, Shri Mansukhlal T. Bavishi, and Shri Vinay Kumar C. Zaveri. The confiscation of six pieces of gold biscuits recovered from Shri Subhas Chandra Saha and the imposition of personal penalty on him were upheld.