CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL HYDERABAD REGIONAL BENCH - COURT NO. – I Customs Appeal No. 30551 of 2024 (Arising out of Order-in-Appeal No. VIZ-CUSTM-000-APP-192 & 193-24-25 dated

11.07.2024 passed by Commissioner of Central Excise & Customs (Appeals), Visakhapatnam)

Pr. Commissioner of Customs .. APPELLANT Visakhapatnam - Customs Custom House, Port Area, Visakhapatnam, Andhra Pradesh – 530 001.

VERSUS Shri Prashant Ramchandra Zende .. RESPONDENT Balawadi Post, Taluka-Khanapur, Sangli District, Maharashtra – 415 307.

AND Customs Appeal No. 30552 of 2024 (Arising out of Order-in-Appeal No.VIZ-CUSTM-000-APP-192 & 193-24-25 dated

11.07.2024 passed by Commissioner of Central Excise & Customs (Appeals), Visakhapatnam)

Pr. Commissioner of Customs .. APPELLANT Visakhapatnam - Customs Custom House, Port Area, Visakhapatnam, Andhra Pradesh – 530 001.

VERSUS Smt. Sapana Vishal Gaikwad, .. RESPONDENT (Legal heir of Late Mr. Vishal Rajaram Gaikwad)

D.No.48-10-34/2, SVT Road, Srinagar, Visakhapatnam, Andhra Pradesh – 530 016.

APPEARANCE:

Shri K. Raji Reddy, Authorized Representative for the Appellant.

Shri Rajnish Kumar Kalawatia, Advocate for the Respondent.

CORAM: HON’BLE Mr. A.K. JYOTISHI, MEMBER (TECHNICAL)

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

FINAL ORDER No. A/30101-30102/2026 Date of Hearing: 03.11.2025 Date of Decision: 25.02.2026 [ORDER PER: ANGAD PRASAD]

The present appeals has been filed by the Department against the Order-in-Appeal No. VIZ-CUSTM-000-APP 95&96–2024-25 dated 11.07.2024 passed by Commissioner (Appeals), whereby, the adjudication orders passed the Original Authority were set aside in favour of respondent.

2. Facts in brief, the DRI officers, Visakhapatnam received specific intelligence on gold smuggling of Bangladesh origin through a passenger namely Shri Prashant Ramachandra Zende travelling in Shalimar- Secunderabad AC Superfast Express. The officers found the passenger alighting at Visakhapatnam Station with gold on 05.01.2023. The officers found that Shri Prashant Ramachandra Zende was approached by Shri Vishal Rajaram Gaikwad (presently deceased) and intercepted Shri Prashant Ramachandra Zende on Platform No.4 of the Visakhapatnam, Railway Station. The DRI officers in the presence of panch witnesses questioned Shri Prashant Ramachandra Zende whether he was carrying any smuggled gold. He reluctantly admitted before the officers that he was carrying gold kept in a tailor made cloth pocket on inner side of his trousers. He also informs that he was smuggling gold for Shri Vishal Rajaram Gaikwad. The officers took the accused to the DRI office in Visakhapatnam and on opening the pockets in the presence of the witnesses found 4 wide yellow metal pieces of different sizes and 19 stick type pieces of yellow metal of different sizes. The total 23 pieces of metal was found by the Gold assayer to be of weight

1860.5 grams with a value of Rs. 1,07,16,480/-. The officers seized the said 23 gold pieces under Section 111 of the Customs Act, 1962 and also seized the packing material under Section 119 of the Customs Act.

3. The officers recorded statement under Section 108 of the Customs Act, 1962. Shri Prashant Ramachandra Zende stated that he was an employee working in Bhavani Gold shop, Visakhapatnam belonging to Shri Vishal Rajaram Gaikwad and he went to Kolkata along with cash of Rs. 12 lakhs given by his employer and handed over the same to Shri Sagar Gaikwad at Kolkata and received the gold from the Shri Sagar Gaikwad. The DRI officers also recorded statement of Shri Vishal Rajaram Gaikwad who stated that he was in business from June 2022 onward and admitted the facts narrated by his employee and also stated that he paid Rs. 80 lakhs in cash earlier to Shri Sagar Gaikwad, his cousin with regard to bringing gold from Kolkata.

4. During search conducted on 05.01.2023 the premises of shop Bhavani Gold in the presence of Shri Anil Rajaram Gaikwad (brother of the deceased Gaikwad), the officers seized graphite ingot