Commissioner of Customs (Preventive) Vs Sai Max Jewelers (CESTAT Allahabad)
The case of “Commissioner of Customs (Preventive) Vs Sai Max Jewelers” (CESTAT Allahabad) centers on the seizure of six gold bars weighing approximately 5999.820 grams, valued at Rs. 1,83,59,448, which were intercepted by the Government Railway Police (GRP) and subsequently handed over to Customs authorities. The key legal question is whether the seized gold bars are of foreign origin and were smuggled into India.
Background and Initial Seizure
On July 23, 2018, at Mughal Sarai railway station, the GRP intercepted Shiv Raj Singh, who was found in possession of six gold bars. Singh failed to produce any documents at the time of seizure, which led the GRP to suspect that the gold bars were smuggled. The gold was handed over to the Customs for further investigation on July 24, 2018. Despite Singh’s claim that he had proper returnable invoices and bills of supply, these were not considered by the authorities.
Customs Investigation and Adjudication
Customs officials conducted an inquiry and concluded that the gold bars were of foreign origin, having been smuggled into India from Bangladesh. Singh, in his statements, indicated that he worked for Hariom Sehgal, the proprietor of Sai Max Traders, and had transported gold from Kolkata to Delhi on several occasions under Sehgal’s instructions. The gold in question was allegedly collected from unknown individuals in Kolkata and brought to Delhi.
