Case Law Details
Commissioner of Customs Vs M.S. Alaudeen (CESTAT Chennai)
Admittedly, the assessee-appellant is not an importer, but a person from whose possession the gold in question has been seized. He says that he is not the owner, but clearly asserts that the same belonged to his customers, whose identity has to be brought on record now. If he satisfactorily proves the source of the said gold, then, perhaps, the situation may be different since there remains nothing to allege irregularity as to importation. Redemption may have to be offered in terms of Section 125 of the Customs Act, 1962, subject to redemption fine as per the provisos thereunder and the discretion is always subject to the second proviso to Section 125 ibid. The gold bar with foreign marking, the source of which is not explained, is liable for absolute confiscation since the same would amount to the importation of a prohibited goods.
FULL TEXT OF THE CESTAT CHENNAI ORDER
These cross-appeals arise out of the impugned of Order-in-Appeal Seaport C.Cus.II Nos. 233-236/2020 dated 06.02.2020 passed by the Commissioner of Customs (Appeals-II), Chennai. The First Appellate Authority has, vide impugned order, dismissed the Department’s appeal and partly allowed the assessees’ appeals by reducing the redemption fine and penalties. The Adjudicating Authority had inter alia ordered confiscation of the seized gold weighing 2.810 kgs. valued at Rs.91,95,725/-, had given an option to redeem the same under Section 125 of the Customs Act, 1962 on payment of fine of Rs.9,20,000/- along with payment of applicable duty on the above gold, apart from imposing penalty under Section 112 ibid. of Rs.10,00,000/- on Shri M.S. Alaudeen, Rs.2,00,000/- on Shri S. Nagoor Gani and Rs.1,00,000/- on Shri G. Umapathy. The First Appellate Authority modified the above by reducing the redemption fine to Rs.4,60,000/- and penalty under Section 112 ibid. to Rs.2,00,000/-, Rs.20,000/- and Rs.10,000/- respectively.
2. Brief facts leading to the filing of these appeals, as gathered from the arguments of the representatives of both sides, inter alia, are that:-
Please become a Premium member. If you are already a Premium member, login here to access the full content.
