CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL HYDERABAD SINGLE MEMBER BENCH - COURT NO. – I Customs Appeal No. 30234 of 2024 (Arising out of Order-in-Appeal No.VJD-CUSTM-000-APP-025-2023-24 dated 30.10.2023 passed by Commissioner of Central Tax & Customs (Appeals), Guntur)

Shri Jacky Kumar Jain .. APPELLANT Proprietor of M/s Jain Silver, D.No. 13/117, BKM Street Y.S.R, Andhra Pradesh – 516 001.

VERSUS Commissioner of Central Tax .. RESPONDENT Guntur P.B.NO. 331, C.R.Building, Guntur, Andhra Pradesh – 520 004.

APPEARANCE:

Ms Veda Samhitha, Advocate for the Appellant.

Shri A. Rangadham, Authorized Representative for the Respondent.

CORAM: HON’BLE Mr. ANGAD PRASAD, MEMBER (JUDICIAL)

FINAL ORDER No. A/30023/2026 Date of Hearing: 24.10.2025 Date of Decision: 09.01.2026 Shri Jacky Kumar Jain, Proprietor of M/s Sri Jain silver (hereinafter referred to as appellant) was, inter alia, issued Show Cause Notice for imposition of penalty under Section 112(a) and 112(b) of the Customs Act. On adjudication, the Adjudicating Authority, inter alia, held that gold jewellery collectively valued at Rs. 13,32,292/- in three installments on 24.12.2020, 29.12.2020 and 30.10.2020 against the invoice dated 14.12.2020 from the possession of one Shri Niazi Pathan Nymattulla Khan liable for absolute confiscation. Thereafter, the Adjudicating Authority imposed a penalty of Rs. 1,50,000/- on Shri Jacky Kumar Jain. The appellant are in appeal against this imposition of penalty.

2. The issue in brief is that based on specific intelligence the Customs Officers of Tirupati Commissionerate intercepted on car on 18.12.2020 in which Shri Niazi Pathan Nasarulla Khan, Niazi Pathan Hyder Khan, Niazi Pathan Nymatulla Khan and Shaik Ali Share were travelling. Further, detailed examination of the vehicle resulted, inter alia, in detection of certain gold jewellery like bangles, bracelets, chains and on questioning about its bonafide they claimed to have procured the gold jewellery at Chennai. The said gold jewellery totally weighing 324.050gms was certified to be of 22K purity and collectively valued at 15,16,553/-. The Officers under reasonable belief that the said jewellery was made out of re-melted smuggled gold of foreign origin, placed it under seizure. Further, statements were recorded under Section 108 of Customs Act from all concerned, wherein, inter alia, Shri Niazi Pathan Nymatulla Khan gave details of source of procurement at Chennai and also admitted of not having any valid documents of purchase etc. However, later on 20.04.2021 Shri Niazi Pathan Nymatulla Khan retracted his statements and stated that a part of jewelleries were purchased from Chennai from one M/s Shreem Jewellery, Coimbatore and was meant for one Sri Jain Silver and remaining jewelleries were procured from one M/s Shreem Jewellery, Coimbatore, which was meant for one Jain Silver, Kadapa.

3. Shri Jacky Kumar Jain of Sri Jain Silver in his statement dated 01.06.2021 stated that he got an order for 270.980gms of gold jewellery form his regular customers and he had placed order 270.980gms of gold jewellery over phone to M/s Shreem Jewellery, Coimbatore and he paid an amount of 6 lakhs on 24.12.2020, Rs. 4,32,292/- on 29.12.2020 Rs. 3 lakhs on 30.12.2020 totaling to Rs. 13,32,292/- to M/s Shreem Jewellery, Coimbatore through RTGS for the invoice dated 14.12.2020. The Adjudicating Authority evaluated various evidences on record and relied on certain admitted facts from the statements made by Niazi Pathan Nymatulla Khan, Niazi Pathan Nasarullah Khan and also by the so called jewelers at Chennai, Coimbatore who had repeatedly supplied such jewellery. The Adjudicating Authority did not agree with the retraction in view of the mis- match in the quantities in the retraction letter with that of his earlier statements and held that the retraction letter dated 20.04.2021 is contradictory to his own admission during panchanama and his statement dated 20.12.2020 and also there were no specific markings on the