Nirbhay Kumar Upadhyay Vs Commissioner of Customs (Preventive) (CESTAT Kolkata)
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has significantly reduced the penalties imposed on two individuals, Shri Nirbhay Kumar Upadhyay and Shri Bachchalal, who were caught concealing smuggled gold. In a recent order, the Tribunal lowered the penalty from Rs. 3,13,000/- each to Rs. 1,00,000/- each, acknowledging their role as mere carriers and not the ultimate beneficiaries of the contraband.
The case originated on April 19, 2019, when officers from the Anti-Smuggling Unit of Customs Division, Imphal, intercepted Shri Nirbhay Kumar Upadhyay and Shri Bachchalal based on specific intelligence. A thorough search of both individuals led to the recovery of six gold biscuits bearing foreign markings, weighing a total of 996 grams. The seized gold was valued at Rs. 31,34,412/-. The appellants were unable to produce any legitimate documents to prove the legal purchase or import of the gold, leading to its seizure under the reasonable belief that it had been smuggled into the country in violation of the Customs Act, 1962, and was thus liable for confiscation under Section 111(b) and (d) of the Act.
Statements recorded from both appellants on the day of interception revealed their confession to having carried the gold biscuits by concealing them in their body cavity (rectum) to evade detection. Following the completion of the investigation, a Show Cause Notice was issued on October 18, 2019, proposing the absolute confiscation of the gold and the imposition of penalties on both appellants under Section 112(b)(i) of the Customs Act, 1962.
