D.S. SRINIVAS Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) ONE Shri D.S. Srinivas, was found in possession of 49 foreign marked gold biscuits by the Ulsoor Gate Police Station officers of Bangalore Police on 12 -3 -98, as he was not able to produce any document at the time of his apprehension. On receipt of intimation from the Inspector of Police and Station House Officer, Ulsoor Gate Police Station. The officers of Customs, contacted the Police Officer on 13 -3 -1998 and inspected the documents. Shri Srinivas was intercepted at 15.45 hours on 12 -3 -98 and they found 49 gold biscuits in a blue coloured jeans bags gold biscuits which were bearing the markings of Swiss Bank Corporation. The Customs Officers after making their enquiries on 17 -3 -98, informed the Police Inspector, Ulsoor Gate Police Station that since the gold biscuits were bearing foreign markings and by virtue of Section 123 of Customs Act, the burden of proof lies on the person who possesses the gold and they would like to make further investigation; the Police Inspector informed them that the seized property shall be handed over to the Customs Department, after obtaining the courts permission as Shri D.S. Srinivas was arrested for a case registered under Section 41D read with Section 102 of CrPC and produced before VI Addl. Metropolitan Magistrate and was released on bail. Meanwhile it was also brought on record by the Advocate for the appellants that the said gold had been claimed by M/s. Seethal Jewellers as received from Indian Overseas Bank, by an application made to the Magistrate.

(2.) ENQUIRIES were thereafter conducted, a show -cause notice was issued to Shri D.S. Srinivas, Shri Lakhanraj, Proprietor of M/s. Seethal Jewellers and one Shri D. Prakash Chand, Proprietor of M/s. Prakash Jewellers asking them to show cause, why the gold in question should not be confiscated and penalties imposed on them. After hearing the appellants and considering their submissions, the Commissioner held, as regards the liability of the absolute confiscation of 49 foreign marked gold biscuits under the provisions of Section 111(d) as per his findings in Para 28(I) and (m) of the order impugned before us, as under :

(3.) WE have considered the submissions and heard both sides and find : -