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Date: 08.07.2025
CESTAT Allahabad Overturns Penalty in Gold Smuggling
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, has allowed a batch of five appeals involving allegations of gold smuggling and has set aside the penalties imposed under Section 112(b) of the Customs Act, 1962. The case revolved around the alleged recovery of over 2.2 kg of gold from two individuals purportedly acting under instructions from the so-called “Verma Brothers.”
Background of the Case
The case originated from a Customs Preventive operation on 30.03.2019 at Cheoki Railway Station, Prayagraj, where two individualsโAppellantsโwere allegedly found in possession of gold bars weighing 2.2 kg, valued at โน72.2 lakhs. The authorities claimed the gold was smuggled into India through Bangladesh via Kolkata. Based on their alleged confessional statements, Customs extended its investigation to include Appellants (collectively referred to as the “Verma Brothers”), imposing penalties of โน25 lakhs each on them and โน5 lakhs each on Appellants.
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 Allahabad
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