Md. Altaf Vs Commissioner of Customs (Prev.) (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Kolkata has dismissed an appeal by Md. Altaf and others, upholding the confiscation of over 8 kilograms of smuggled gold and penalties imposed on them. The case originated from a Directorate of Revenue Intelligence (DRI) tip-off on August 27, 2019, which led to the interception of a car at a toll plaza near Vidyasagar Setu. After initial denials, the occupants admitted to carrying smuggled gold concealed in a specially built cavity behind the car’s rear armrest.
Authorities recovered eight gold bars and a smaller cut piece, collectively weighing more than 8 kilograms and valued at over ₹3.19 crore. The individuals were unable to produce any legal documents for the gold’s acquisition, transportation, or possession. As no one claimed ownership, the adjudicating authority ordered the absolute confiscation of the gold and imposed penalties under Section 112(b) of the Customs Act, 1962.
In their appeal, the defendants claimed they were unaware of the gold’s presence and argued they were innocent. However, the tribunal found this argument unconvincing. It stated that the burden of proof lay with the appellants to demonstrate that they possessed the gold through legal means, which they failed to do. The court’s decision reinforces the legal principle that possession of a contraband item without valid documentation is sufficient grounds for confiscation and penalty. The CESTAT concluded that there was no reason to interfere with the lower authority’s order and dismissed the appeals.
