ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 21.08.2025
CESTAT Kolkata Overturns Gold Confiscationβ β β
In a pivotal judgment, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has quashed the confiscation of 20 gold biscuits weighing 3320 grams and a Maruti van, along with penalties imposed on two appellants. β This case, which revolved around allegations of gold smuggling, has set a significant precedent in the interpretation of the Customs Act, 1962, particularly concerning the burden of proof and the legality of seizures. β
The Case at a Glance
On July 24, 2015, personnel from the 24th Assam Rifles intercepted a Maruti van on the Imphal-Moreh highway and discovered 20 gold biscuits hidden in a secret compartment. β The gold, valued at βΉ83,00,000, was suspected to be of foreign origin and handed over to Customs Preventive officers. β The driver claimed he was merely transporting the gold for an unknown individual. β Subsequently, Appellant, a registered jeweler, claimed ownership of the gold, presenting tax invoices from M/s Sangham Diamonds Pvt. β Ltd., Mumbai, as evidence of lawful purchase. β
The Customs authorities, however, alleged that the gold bore foreign markings (“THOON”) and was smuggled into India. β They confiscated the gold and the vehicle under Sections 111(b), 111(d), and 115(2) of the Customs Act, 1962, and imposed penalties of βΉ8,00,000 each on the 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 Kolkata
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