ORDER: [PER SHRI K. ANPAZHAKAN]

The appeal is arising out of the Order-in-Appeal No. KOL/CUS(AIRPORT)/AKR/559/2020 dated 24.08.2020 (hereinafter referred to as the ‘impugned order’) passed by the Ld. Commissioner of Customs (Appeals), Custom House, 15/1, Strand Road, Kolkata – 700 001, whereby the adjudication Order No. 23/2019 ADC dated 07.03.2019 passed by the Ld. Commissioner of Customs (Airport), Kolkata has been upheld.

2. The facts of the case are that acting on a specific intelligence gathered to the effect that one person by the name of Shri Uday Shankar Rai (hereinafter referred to as the “appellant”) who was coming from Guwahati via Indigo Flight No. 6E 208 on 18.01.2016 and would be carrying smuggled gold of foreign origin secreted in his body, the said person, Shri Uday Shankar Rai (appellant), along with one (01) handbag was intercepted near conveyor belt no. 03 at the Domestic Arrival Hall of Netaji Subhash Chandra Bose Airport, Kolkata on 18.01.2016. On search of his body and further interrogation, three (03) bundles collectively weighing around 996.600 grams were found to be kept concealed by the appellant inside his rectum, which were voluntarily ejected by him later. The said three (03) bundles were found to be wrapped with blue coloured carbon paper and sealed with white adhesive tapes and multi-coloured rubber sheets. The said three (03) bundles were thereafter cut open, in the presence of two independent witnesses and the appellant, subsequent to which six (06) yellow metallic melted rectangular bars, believed to be gold of foreign origin, were recovered.

2.1. The goods were examined by a government approved valuer, who opined that the six (06) yellow metallic melted rectangular bars were gold of foreign origin, of 24 Karat, collectively weighing 996.600 grams and totally valued at Rs.26,40,990/-.

2.2. The appellant/passenger could not produce any licit document in support of legal acquisition, importation or transportation of the said six (06) rectangular melted gold bars which were deeply concealed in his body cavity. Accordingly, it was alleged that there was an attempt on the part of the appellant to wilfully and intentionally smuggle the said (06) rectangular melted gold bars, by way of such concealment inside his rectum. Therefore, under the reasonable belief that the above said gold bars had been illegally imported / transported into India in contravention of the provisions of the Customs Act, 1962 read with the Foreign Trade (Development & Regulation) Act, 1992, the said gold bars along with the wrapping materials thereof were seized by the Customs Officers.

3. A Show Cause Notice was issued to the appellant on 08.07.2016 on the allegation that Shri Uday Shankar Rai (appellant) had tried to import 06 (six) yellow metallic gold bars of 24 Karat, weighing 996.600 grams and totally valued at Rs.26,40,990/- (Rupees Twenty Six Lakh Forty Thousand Nine Hundred and Ninety Only) from outside India in clandestine manner, without declaring the same to the Customs Authorities and by concealing the same in ingenious way inside the rectum, which is a clear case of violation of the Section 111(d), 111 (i) and 111(l) of Customs Act, 1962 read with Foreign Trade (Development & Regulation) Act, 1992. Therefore, a Notice was issued inter alia proposing confiscation of the six (06) yellow metallic gold bars under Section 111(d), 111(i) and 111(l) of the Act, along with imposition of penalty on the appellant under Section 112(a) and 112(b) ibid.

3.1. The ld. adjudicating authority thereafter passed the Order-in-Original No. 23/2019 ADC dated 07.03.2019 inter alia ordering absolute confiscation of the seized six (06) pieces of rectangular gold bars collectively weighing 996.600 grams totally valued at Rs.26,40,990/- under Section 111(d), 111(i) and 111(l) of the Customs Act, 1962. He also imposed a penalty of Rs.12,00,000/- on the appellant under Section 112(a) and 112(b) of the said Act.

3.2. On appeal, the Ld. Commis