Under the Customs Act, 1962, while the burden of proof regarding the licit nature of seized gold rests on the possessor under S.123, the confiscation of Indian currency as alleged 'sale proceeds' under S.121 requires substantive, independent evidence to establish a direct nexus between the cash and smuggling activities.

FINAL ORDER NOs. 75615-75616 / 2026 DATE OF HEARING: 30.03.2026 DATE OF DECISION: 20.05.2026 ORDER: [PER SHRI K. ANPAZHAKAN]

The present appeals have been filed against the Orders-in-Appeal Nos. KOL/CUS(PORT)/AKR/757- 760/2021 dated 07.10.2021 whereby the Ld. Commissioner of Customs (Appeals), 3^rd Floor, Custom House, 15/1, Strand Road, Kolkata – 700 001, has, inter alia, upheld the demands confirmed against the appellants herein in the Order-in-Original No.

02/ADC(P)/CUS/WB/19-20 dated 08.07.2020.

1.1. Since both these appeals have arisen out of a common order and involve a common issue, they are heard together and disposed of by this common order. 2. The facts of the case are that on 25.06.2018, Officers of the Divisional Preventive Unit (DPU), Barasat Customs Division searched the workshop premises of M/s. Tarak Nath Metling House located at the 2^nd Floor of the premises at 5/1, Ram Kumar Chandra Lane, Kolkata – 700 007. During the course of search operations, inter alia, two persons available therein by the name of Shri Rajendra Roy [hereinafter referred to as the “appellant no. 1”] and Shri Avijit Bhandari [hereinafter referred to as the “appellant no. 2”] , from whose possession 06 (six) pieces of gold totally weighing 699.810 gms. and cash of Indian currency valuing Rs.70,00,000/- (Rupees Seventy Lakh only) were recovered. It was informed by Shri Avijit Bhandari / appellant no. 2 that the amount of Rs.70,00,000/- found in his bag had been received from Shri Rajendra Roy / appellant no. 1. No licit document could be produced by either the appellant no. 1 or the appellant no. 2 in support of lawful acquisition and possession of the said gold, which is a specified item under Section 123 of the Customs Act, 1962. The said goods were thus seized under Section

110 of Customs Act, 1962 in Seizure Case No. 01/IMP/CL/GOLD/CUS/ BCD/DPU/2018-19 dated 25.06.2018 by the Officers of Customs, DPU, Barasat Customs Division, West Bengal, Kolkata.

3. Statements dated 25.06.2018 and 26.06.2018 were respectively recorded from both the appellants at the office of Barasat Customs Division and thereafter, the appellants were arrested on 26.06.2018 under Section 104 of Customs Act, 1962 read with Section 135 of the said Act. Subsequently, they were produced before the Ld. Chief Metropolitan Magistrate, Calcutta on 26.06.2018, when they were enlarged on bail.

3.1. Statements of various other accused / co-accused / connected persons were also recorded during the course of investigation.

4. The seized 06 (six) pieces of gold bars weighing 699.810 grams were assayed in the Chemical Laboratory at Custom House, Kolkata by the Chemical Examiner and thereafter, an Assay Report dated 23.07.2018 under Lab No. 1126-1134/SZD(G)-447- 455 dated 10.07.2018 was issued certifying the purity of the gold to be of 99.8% by weight.

5. Accordingly, it was inferred by the Revenue that the 06 (six) numbers of gold biscuits of foreign origin under seizure, as detailed in the Inventory cum Seizure Memo dated 25.06.2018, were illegally brought into India from outside India through a route other than a route specified in the Notification No. 63/994-Cus.(N.T.) dated 21.11.1994, as amended issued under clause(c) of Section 7 of the Customs Act, 1962 for import of such goods and thus, were liable for confiscation under Sections 111(b) and

111(d) of the said Act. It was also inferred that the Indian Currency of Rs.70,00,000/- was liable for confiscation being the sale proceeds of smuggled gold. 6. Pursuant to the above, a Show Cause Notice dated 19.06.2019 was issued to the appellants, amongst others, thereby proposing confiscation of seized gold under Section 111(b) and 111(d) of the Customs Act, 1962 and confiscation of the seize