1999 (9) TMI 312 - AT - Customs

Summary

Issues involved:
1. Seizure of gold biscuits from appellants at Bhubaneswar Railway Station.
2. Legal possession of the gold biscuits.
3. Imposition of penalty and confiscation of gold.
4. Retraction of statements by appellants.
5. Rejection of baggage receipts as evidence.
6. Appeal against the order of confiscation and penalties.

Detailed Analysis:
1. The appellants were intercepted at Bhubaneswar Railway Station with gold biscuits concealed in their undergarments. The gold was seized as no explanation for legal possession was provided. Statements revealed the purchase of gold at the instance of one appellant and intended delivery to another person. Further investigations and searches were conducted based on these events.

2. A show-cause notice proposing penalty and confiscation was issued. The appellants argued that the gold was legally imported and produced documents supporting their claim. However, the adjudicating authority rejected their defense, citing lack of proof like copies of sale letters or matching baggage receipts. Confiscation of gold and imposition of penalties followed.

3. The Commissioner, Customs (Appeals) upheld the confiscation but reduced penalties. The appellants' representatives argued against the rejection of baggage receipts, emphasizing that the law does not require gold to be accompanied by documents during transit. They contended that the documents should have been verified and linked to the seized gold.

4. The Revenue reiterated the reasons for rejection, emphasizing the detailed statements provided by the appellants and their subsequent retractions. The adjudicating authority's thorough consideration of all points raised by the appellants was highlighted.

5. The judge found that the rejection of the baggage receipts without verification was improper. The appellants' claim of legal importation based on the receipts should have been examined. The judge directed a reevaluation of the claim with verification of the receipts to determine if they matched the seized gold, indicating that confiscation based on circumstantial evidence alone was unjustified.

6. The judgment set aside the previous order, allowing the appeals by remanding the matter for reconsideration based on the verified baggage receipts. The judge emphasized the importance of properly assessing the evidence presented and directed the original adjudicating authority to redecide the case in light of the verified documents and other evidence on record.