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Issues:
Challenge to penalty under Section 112(b) of the Customs Act, 1962 for possession of smuggled gold biscuits. Analysis: The appellant, a goldsmith, challenged a penalty of Rs. 2000 imposed on him for possessing gold biscuits, three of 10 tolas each and one of a different quantity, recovered during a search of his premises. The gold was marked 9999 and "Swiss," with purity ranging from 99.50% to 99.90%. The appellant claimed to have received the biscuits from someone who denied delivering them. The adjudicating authority confiscated the gold, considering it smuggled and unclaimed, imposing a penalty of Rs. 20,000. The appellant's advocate argued that the gold was not smuggled, citing lack of defacement allegations and high purity levels. He contended that the gold was not in conscious possession of the appellant due to his profession as a goldsmith. The Revenue's representative supported the authority's findings, emphasizing the defacement issue. The judge considered both parties' arguments and found that the adjudicating authority relied on defacement and markings to determine the gold's smuggled nature. However, as no defacement allegations were made in the notice or panchnama, the judge doubted the gold's classification as smuggled. The judge noted the high purity of the gold and questioned the conscious possession aspect, as there was no evidence of personal delivery to the appellant. Consequently, the judge ruled in favor of the appellant, setting aside the penalty but upholding the confiscation of the gold biscuits. The judgment emphasized that the appellant was not liable for the penalty based on the circumstances of the case.
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