Kailash Chander Varshney Vs Additional Commissioner (CESTAT Delhi)
Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Delhi, has upheld the absolute confiscation of 2.95 kilograms of foreign-marked gold and a penalty of ₹10,00,000/- imposed on Kailash Chander Varshney. The tribunal’s decision affirmed the orders passed by the Additional Commissioner and subsequently by the Commissioner (Appeals), concluding that Varshney failed to provide adequate proof of the gold’s legitimate possession or payment of customs duty.
The case originated on April 11, 2018, when Customs officers, acting on specific intelligence, searched Varshney’s premises. During the search, six pieces of gold, weighing a total of 2,946.80 grams and bearing foreign markings, were recovered. Varshney, a dealer in gold and silver, was questioned on the same day. He stated that he had purchased the gold from traders without any bills or invoices, acknowledging that he had no documents to evidence its licit possession. This admission was reiterated in subsequent statements recorded on April 12, 2018, and August 9, 2018.
Following these statements, a show cause notice was issued to Varshney on September 24, 2018, proposing the confiscation of the seized gold and the imposition of penalties. Varshney submitted a reply on November 19, 2018, seeking the unconditional release of the gold. Personal hearings were scheduled, during which Varshney’s advocate, Shri C.L. Paul, appeared and reiterated the defense submissions, requesting the gold’s release.
