Page 151 - ELT_3rd_1st May 2020_Vol 372_Part

2020 ] S. RAMKI v. PRINCIPAL COMMISSIONER OF CUSTOMS, CHENNAI-III 373

pect that bills created at later stage - Appellants sufficiently discharged onus
to establish possession of gold - Department cannot proceed to confiscate on
assumptions and presumptions - Impugned order set aside - Section 111 of
Customs Act, 1962. [paras 8, 9, 10, 11, 12, 13, 14]
Appeals allowed
REPRESENTED BY : Shri P. Kulasekaran, Advocate, for the Appellant.
Shri B. Balasmurugan, AC (AR), for the Respondent.
[Order]. - The issue involved in these appeals being same and being
connected, they are heard together and disposed by this common order.
2. Brief facts of the case are that Shri S. Ramki and Shri P. Dilli Raja
(appellants in Appeal No. C/40582/2019 and Appeal No. C/40584/2019 respec-
tively) were intercepted by Central Crime Branch on 27-2-2014 at Korrukupet
Railway station. The personal search of Shri Ramki resulted in recovery of one
crude gold bangle with white powder and 2 nos. of Gold bars with foreign mark-
ings kept in the specially made cavity of the jeans pant. The personal search of
Shri Dilli Raja resulted in recovery of one crude bangle coated with white pow-
der and 2 gold bars with foreign markings. Thus gold totally weighing 998 gms.
valued at Rs. 29,23,142/- was recovered and crime under [Section] 41 read with
[Section] 102 Cr. P.C was registered. They were arrested and produced before the
Metropolitan Magistrate Court, George Town, Chennai. The accused were en-
larged on bail. Later, the case was transferred to the Metropolitan Magistrate of
Economic Offences Court at Egmore on the belief that the case involved smug-
gling of gold. The Additional Chief Metropolitan Magistrate directed the Cus-
toms Department to receive the seized goods and for further action. During such
investigation by Customs, Mr. S. Ramki (Appellant-1) stated that he received
gold bars from one Shri V. Ramachandran (Appellant-2) on the instructions of
his maternal uncle Mr. P. Dilli Raja (Appellant-3). Shri Ramki also produced cash
memos/bills for purchase of these bars and jewellery. On verification of these
documents, department entertained a view that they are not genuine. Show
cause notice was issued proposing to confiscate the gold and also for imposing
penalty. After due process of law, the original authority confirmed the confisca-
tion and also imposed penalties. The appellant filed appeal before the Commis-
sioner (Appeals) and vide order dated 28-9-2017, the Commissioner (Appeals)
observed that the gold biscuits found in the possession of the appellants cannot
be said to be of smuggled nature. However, he was of the opinion that to reach to
a definite conclusion an enquiry has to be made with regard to the nature of the
bills produced. He directed the original authority to compare the bills with the
certified copy of the bail application. It was also held that if the bills are referred
in the bail application the confiscation and penalties would not stand. The appeal
was disposed in such manner. In such remand, the original authority conducted
a de novo adjudication and thereafter vide Order-in-Original dated 18-7-2018 or-
dered absolute confiscation of the gold and also imposed penalties. The said or-
der was appealed before the Commissioner (Appeals) who vide order impugned
herein upheld the order passed by the original authority. Hence these appeals.
3.1 On behalf of the appellants, Ld. Counsel Shri P. Kulasekaran ap-
peared and argued the matter. He explained the facts of the case. It is submitted
by him that Shri V. Ramachandran is permanently residing in Imphal and the
EXCISE LAW TIMES  1st May 2020  151