9911796707
TMI Blog2003 (7) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... rds and heard both the sides. The relevant facts of the case are as under :- Officers of Customs recovered 14 gold biscuits of foreign origin valued at over Rs. 7 lakhs from the possession of two Nepali nationals namely S/Shri Dil Prasad Sapkota and Gyan Hari Sapkota on the premise that the gold biscuits had been smuggled into India from Nepal. The officers seized the goods under a panchnama. The two Sapkotas, in their statements recorded by the officers, stated that the gold biscuits were meant for delivery to one Shri R.C. Jaiswal. In a follow-up action at the residence of Shri Jaiswal, the officers recovered a telephone diary as well as certain goods which were believed to be meant for packing gold biscuits. During the search operation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very initial stage of investigation is bad in law. In this connection, he referred to the provisions of Section 124 of the Customs Act. Arguing on behalf of K.P. Keshari, the Counsel submits that the appellant had nothing to do with the gold biscuits seized and confiscated and, therefore, no penalty was liable to be imposed on him. It has been the contention of the appellant that the currency of Rs. 2.5 lakhs was being taken from Verma to Jaiswal as consideration for 5 gold biscuits delivered a week ago by Jaiswal to Verma. There is no evidence to controvert this contention of the appellant, nor is there any seizure/confiscation of those gold biscuits which were allegedly sold by Jaiswal to Verma a week ago. In this connection, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the currency of Rs. 2.5 lakhs was the sale proceeds of certain gold biscuits other than those confiscated under the order. In this context, the Tribunal's decision cited by the Counsel has a say. In that case, this Tribunal explained the legal requirements for a penalty to be imposed under Section 112 of the Customs Act on a person from whom Indian currency is seized and confiscated under Section 121 of the Customs Act on the ground that the currency is the sale proceeds of contraband gold. The ingredients to be satisfied for such penalty are as under :- 1. There must be a sale; 2. The sale must be of smuggled goods; 3. The sale must be by a person having knowledge or reason to believe that the goods were of for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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