Vishal Dhirubhai Gabani Vs Additional Commissioner of Customs Surat (Gujarat High Court)
Summary: Gujarat High Court dismissed the writ petition filed by Vishal Dhirubhai Gabani challenging an Order-in-Original dated 06.11.2025 imposing penalty of Rs.4,46,47,485/- under Sections 112(a) and 112(b) of the Customs Act, 1962. The proceedings arose from investigation into smuggling of gold in paste form through Surat International Airport. The petitioner contended that the show-cause notice did not properly specify the applicable clause of Section 112 and that gold was “dutiable goods” attracting Section 112(ii), rather than “prohibited goods” attracting Section 112(i).
The High Court found that the show-cause notice specifically described the petitioner’s alleged role as an active syndicate member who arranged around 2,75,000 Dirhams in the UAE for purchase of gold and referred expressly to Sections 112(a) and 112(b). The Court held that the notice sufficiently informed the petitioner of the exact contravention alleged against him.
On the scope of Section 112, the Court held that the petitioner’s alleged role attracted both clauses (a) and (b). Section 112(a) covers persons whose acts or omissions render goods liable to confiscation as well as persons abetting such acts, whereas Section 112(b) covers possession, carrying, concealing, selling, purchasing or otherwise dealing with goods with the requisite knowledge. Since the petitioner was found involved both in getting gold smuggled into India in paste form and in dealing with it, the Court held that both provisions could apply.
