2025-VIL-2062-CESTAT-KOL-CU
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CUSTOMS CESTAT Cases

Customs – Absolute confiscation of gold bars – Sustainability – Officers intercepted Appellant and recovered gold bars and Indian currency from him – After issuance of show cause notice, Adjudicating Authority ordered for absolute confiscation of gold bars and Indian Currency notes – Commissioner (Appeals) upheld order passed by Adjudicating Authority – Whether order of absolute confiscation of gold bars in question is sustainable – HELD – Gold in question was seized in midst of town of Kolkata, where gold with foreign markings is freely available in market. There is no evidence available on record to prove that gold was imported from a foreign country in contravention of provisions violating conditions prescribed for importation of gold. Mere absence of documents cannot make gold in question as smuggled gold. Department had not brought any evidence to establish smuggled nature of gold. Order of absolute confiscation of gold bars is not sustainable and hence, it is set aside – Appeal allowed - Confiscation of currency notes – Whether Indian currency notes recovered from possession of Appellant was liable for confiscation or not – HELD – Indian Currency was recovered from Appellant on allegation that said currency was sale proceeds of smuggled gold. Department had failed to prove that said Indian currency was sale proceeds of gold of foreign country origin. On contrary, Appellant had submitted photocopy of income tax returns evidencing that he had at his possession more than 2,00,000/- rupees. Appellant had placed enough evidence to substantiate licit possession of Indian currency. Indian currency was not liable for confiscation and hence, order of confiscation of said currency is set aside. Department is directed to return said currency to Appellant - Illegal seizure of currency – Entitlement of interest – Whether Appellant is entitled to claim interest for illegal seizure and subsequent confiscation of Indian currency – HELD – Since it has been established that Indian currency was not liable for confiscation, order of confiscation had been set aside. As Appellant had been deprived of licit property owned by him, it is proper to agree with claim of interest made by Appellant. Appellant is entitled to benefit of interest at applicable rate from date of seizure of Indian currency till date of its return to Appellant.
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