CESTAT Kolkata Sets Aside Penalty for Alleged Role in Foreign Gold Smuggling

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 05.06.2025

CESTAT Kolkata Sets Aside Penalty for Alleged Role in Foreign Gold Smuggling

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has ruled in favour of an appellant who was penalized ₹30 lakhs under Section 112(b) of the Customs Act, 1962, for alleged involvement in gold smuggling from Bhutan. The case highlights the importance of independent corroborative evidence when imposing penalties, particularly in cases involving sensitive imports like gold.

Case Background

The Directorate of Revenue Intelligence (DRI), Siliguri, conducted a series of seizures involving smuggled foreign origin gold allegedly routed through Bhutan and subsequently melted in Indian melting units.

The appellant, who owned a gold melting unit, was charged with:

• Aiding in the concealment and melting of smuggled gold.
• Violating Section 112(b) of the Customs Act, 1962.
• Being part of a conspiracy involving illegal import and laundering of foreign gold.
• The adjudicating authority had imposed a personal penalty of ₹30 lakhs on the appellant, citing statements made by alleged co-conspirators.

This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

Source: CESTAT Kolkata

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