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Appeal against penalty under Section 112(b) of the Customs Act based on the possession of foreign origin gold without sufficient evidence. Analysis: The appellants challenged the penalty imposed on them under Section 112(b) of the Customs Act. The Customs Officers had arrested an individual, Teerath Prasad Gupta, in possession of foreign origin gold, which he admitted to purchasing from Nepal. However, the appellants denied any involvement or knowledge of the smuggling activity. The sole evidence against the appellants was the statement of Teerath Prasad Gupta, alleging that the seized gold was meant to be sold through them. Despite this claim, no physical evidence linking the appellants to the smuggling operation was found. No foreign gold or cash proceeds were recovered from the appellants. The Tribunal noted that the uncorroborated statement of Teerath Prasad Gupta was insufficient to establish the appellants' guilt beyond a reasonable doubt. Consequently, the Tribunal ruled in favor of the appellants, setting aside the penalty and allowing their appeals with any consequential relief due to them. This judgment highlights the importance of substantial evidence in establishing liability under the Customs Act. The Tribunal emphasized the need for corroborating evidence to support allegations of involvement in smuggling activities. In this case, the lack of physical evidence connecting the appellants to the seized gold, coupled with the absence of any incriminating findings during the investigation, led to the dismissal of the penalty imposed on the appellants. The decision underscores the principle that penalties should only be imposed based on concrete evidence that conclusively proves the alleged offense. The Tribunal's ruling serves as a reminder of the legal requirement for a robust evidentiary basis before penalizing individuals under customs laws.
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