Foreign stamped Gold seizure: HC orders Customs to verify authenticity of purchase documents

S Shyam Prasad | NT

Bengaluru: The High Court has directed the Commissioner of Customs (Appeals) and the Customs & Service Tax Appellate Tribunal (CESTAT) to satisfy itself with regard to the authenticity of invoices produced by the accused before pronouncing judgement.

The Customs had seized eleven gold bars weighing 1028.35 grams from an importer and also imposed a fine of Rs.9 lakh.

The importer had produced invoices from two local jewellers from whom he had purchased the gold, but the Commissioner and CESTAT had not considered them.

Ravi Kumar RM, a partner in Aishwarya Investments, had approached the HC challenging the order of the CESTAT. The appeal was heard by the division bench of Justice PS Dinesh Kumar and Justice TG Shivashankare Gowda recently.

The Income Tax authorities had conducted a raid in which 17 gold bars were seized from the Company. Of them, six gold bars had Indian markings and were released.

The remaining 11 gold bars had foreign markings or no markings and were seized. On the information provided by the IT authorities, the Customs Department initiated action against the Company.

The Additional Commissioner of Customs in an order dated October 25, 2017 ordered for absolute confiscation of the gold biscuits with foreign markings and also imposed a fine of Rs 9 lakh under Section 112(a) of the Customs Act.

The order was upheld by the Commissioner of Customs (Appeals) and also the CESTAT prompting the Company to approach the High Court. (CSTA 8/2020)