CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH – COURT NO. I CUSTOMS APPEAL NO. 55787 OF 2023 [Arising out of Order-in-Appeal No. IND-EXCUS-000-APP-175-179-2023-24 dated 11.10.2023 passed by the Commissioner (Appeals) Customs, CGST, Central Excise, Indore (M.P.)]

Mohammad Nisar Mew ..…Appellant S/o. Mohammad Rajjak Mew, 29, Muslim Colony, Onkar Marg, Gandhi Nagar Bangarda Bada, Indore (M.P.)

VERSUS The Commissioner of Customs .....Respondent Office of the Commissioner of Customs, B-Zone, 3rd Floor, Village Pipliyakumar, Nipaniya, Indore 452001 WITH CUSTOMS APPEAL NO. 55788 OF 2023 [Arising out of Order-in-Appeal No. IND-EXCUS-000-APP-175-179-2023-24 dated 11.10.2023 passed by the Commissioner (Appeals) Customs, CGST, Central Excise, Indore (M.P.)]

Shri Ajaykumar Jain ..…Appellant S/o. Devchand Jain, Kham Kheda Jatra, Kham Kheda, Tehsil Ashta, Sehore, Madhya Pradesh VERSUS The Commissioner of Customs .....Respondent Office of the Commissioner of Customs, B-Zone, 3rd Floor, Village Pipliyakumar, Nipaniya, Indore 452001 APPEARANCE:

Shri Hardik Modh, Advocate for the Appellant Shri Nikhil Mohan Goyal, Authorized Representative for the Department CORAM:

HON’BLE MR. JUSTICE DILIP GUPTA, PRESIDENT HON’BLE MS. HEMAMBIKA R. PRIYA, MEMBER (TECHNICAL)

Date of Hearing: 12.08.2025 Date of Decision: 06.02.2026 FINAL ORDER NO’s. 50224-50225/2026 JUSTICE DILIP GUPTA:

Customs Appeal No. 55787 of 2023 has been filed by Mohammad Nisar Mew for quashing that portion of the order dated 11.10.2023 passed by the Commissioner (Appeals) Customs, CGST, Central Excise, Indore (M.P.)¹ that rejects the appeal filed by the appellant against the order dated 09.09.2022 passed by the Additional Commissioner of Customs, Indore² that confirms the imposition of penalty upon him under section 112(b)(i) of the Customs Act, 1962³

2. Customs Appeal No. 55788 of 2023 has been filed by Ajay Kumar Jain for quashing the order dated 11.10.2023 passed by the Commissioner (Appeals) to the extent it rejects the appeal filed by the appellant against the order dated 09.09.2022 passed by the Additional Commissioner that confirms the imposition of penalty upon him under section 112(b)(i) of the Customs Act.

3. M/s. S.R. & Co. is engaged in the trading of gold bullion. Mitual Kumar Patel is a partner in M/s. S.R. & Co. One, Gourav Jain, a partner in M/s. Pulak Ornaments LLP, is said to have placed an order of 69kg gold bars with M/s. S.R. & Co. with a condition that the payments would be made within one or two days. The appellants, employees of M/s. Pulak Ornaments LLP, took delivery of the gold bars on 20.03.2021 and while they were returning to Indore by car, the officers of Directorate Revenue Intelligence⁴ intercepted the car at Indore and seized the gold bars.

1. the Commissioner (Appeals) 2. the Additional Commissioner

3. the Customs Act

4. the DRI Statements of the appellants and Gourav Jain were recorded on

21.03.2021.

4. Mitul Kumar Patel, in his statement made on 30.04.2021, in response to question numbers 22, 23 and 24 stated that the gold bars supplied to Gourav Jain under cover of invoice dated 20.03.2021 were purchased from M/s. Ariplutus Metals Pvt. Ltd. This fact was also stated by Mitul Kumar Patel in the letter dated 29.05.2021 addressed to the investigating authority stating that it had sold the gold bars in question to M/s. Pulak Ornaments LLP under the Invoice dated 20.03.2021. It was further clarified that the said gold bars were originally purchased by M/s. S.R. & Co. from M/s. Ariplutus Metals Pvt. Ltd. under Invoice dated 19.03.2021. In the said communication M/s. S.R. & Co. also categorically denied the contents of the earlier recorded statement wherein it was stated that it had received cash payment from Pulak Ornaments LLP towards the sale of the gold bars.

5. A show cause notice dated 17.09.2021 was issued to the appellants and others. The allegations against the appellants made in the show cause notice are as follows:

“4. Shri Ajay Kuma