COMMISSIONER OF CUSTOMS Vs. OM PRAKASH KHATRI

JUDGEMENT

(1.) The Commissioner of Customs, Cochin is before us in appeals aggrieved by the common final order dated 19.11.2018 passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Bangalore.

(2.) The facts in brief are thus: On 04.02.2014, two persons named Surendra Singh and Dhiraj Kumar Devasi alleged to be the employees of M/s Panna Gold Impex Ltd., Mumbai, were intercepted by the officers of Directorate of Revenue Intelligence (DRI) at Vyttila in Ernakulam; from whose possession were seized gold bars and pieces weighing 4430.730 gms., valued at Rs.1,54,28,372/-and gold ornaments weighing 5536.200 gms. valued at Rs.1,32,78,898/-. That apart, Rs.42,000/in cash, alleged to be sale proceeds of contraband gold, was also recovered. The confession statements of the apprehended persons revealed involvement of one Om Prakash Khatri, Director of M/s Panna Gold Impex Ltd. Show cause notices were issued to the aforesaid three persons and the company, and after adjudication, the Joint Commissioner as per Annexure A order dated 05.05.2015 ordered absolute confiscation of the gold bars and jewellery under Section 111(a), (d) and (m) read with Section 120(1) of the Customs Act, 1962 (for short "the Act") and also imposed a penalty of Rs.20 lakhs on Om Prakash Khatri and Rs.10 lakhs on M/s Panna Gold Impex Ltd. under Section 114AA of the Act. The Adjudicating Authority also imposed a penalty of Rs.5 lakhs each on the aforementioned three persons as well as the Company under Section 112 of the Act. The currency was however ordered to be released.

(3.) The appeals filed before the Commissioner was disposed of vide a common order at Annexure B dated 08.10.2015 modifying the order of the Adjudicating Authority by quashing the confiscation of gold ornaments. The remaining part of the order was sustained. The parties again filed a second appeal before the Tribunal, which vide common impugned order allowed the appeal and set aside the adjudicatory order altogether.