Rajendra Roy Vs Commissioner of Customs (Preventive) (CESTAT Kolkata)
In , the appeals before the Customs, Excise and Service Tax Appellate Tribunal Kolkata arose from a common order upholding confiscation of six foreign-origin gold biscuits weighing 699.810 grams and Indian currency amounting to Rs.70 lakh recovered during a customs search conducted on 25.06.2018 at a workshop premises in Kolkata. Customs authorities had alleged that the gold was smuggled into India and that the seized currency represented sale proceeds of smuggled gold.
The Tribunal noted that the gold biscuits, bearing foreign inscriptions and having 99.8% purity, were recovered from the possession of Shri Avijit Bhandari, while the appellants failed to produce any documents proving lawful acquisition or possession. Referring to Section 123 of the Customs Act, the Tribunal held that the burden to establish lawful possession of notified goods like gold rested on the persons from whose possession the goods were seized. Since no bills, invoices, vouchers, or contemporaneous records were produced, the statutory presumption that the gold was smuggled remained unrebutted.
The Tribunal therefore upheld absolute confiscation of the six gold biscuits under Sections 111(b) and 111(d) of the Customs Act and rejected the request for redemption under Section 125, observing that redemption is discretionary and not a matter of right in cases involving smuggled goods.
