Case Law Details
R. K. Swami Singh Vs Commissioner of Customs (Preventive) (CESTAT Kolkata)
In the case of R. K. Swami Singh vs Commissioner of Customs (Preventive), the CESTAT Kolkata recently deliberated on penalties imposed under Section 112(b)(ii) of the Customs Act, 1962. The appellant contested the confiscation and penalties related to 12 gold biscuits seized in 2014. The appellant, R. K. Swami Singh, was intercepted by Imphal Customs officers while transporting 12 gold biscuits weighing approximately 2002.26 grams. The appellant failed to produce legal importation documents, leading to seizure under Section 110(1) of the Customs Act on grounds of suspected smuggling. Subsequent adjudication resulted in the confiscation of the gold valued at Rs. 49,74,605 and a penalty of Rs. 10,00,000 under Section 112(b)(ii).
During appeal, Singh refuted the charges, claiming inheritance of the gold from his father and challenging the foreign origin and smuggling allegations. He argued the lack of evidence supporting the reasonable belief that the gold was smuggled or of foreign origin. Singh further contested the validity of his initial statements, alleging they were coerced and retracted during the hearing.
The CESTAT Kolkata scrutinized the evidence, highlighting inconsistencies and the absence of corroborative proof establishing the gold’s foreign origin or illegal importation. Citing precedents and legal principles, the tribunal assessed the sufficiency of the ‘reasonable belief’ required under Section 123 of the Customs Act. It emphasized the necessity for concrete evidence beyond assumptions to justify confiscation and penalties.
Based on the detailed review of facts and legal interpretations, CESTAT Kolkata ruled in favor of R. K. Swami Singh, quashing the penalties imposed under Section 112(b)(ii) of the Customs Act. The tribunal underscored the importance of substantiated ‘reasonable belief’ in smuggling cases and the essentiality of corroborative evidence to support such claims.
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