CESTAT has ruled that customs cannot confiscate gold if GST records and purchase documents establish lawful ownership, highlighting the burden of proof under Section 123.
CESTAT Rules on Gold Ownership and Confiscation
In a pivotal case, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that customs cannot confiscate gold if the owner provides sufficient evidence of lawful ownership through purchase invoices, GST returns, stock registers, and job work challans.
This ruling highlights the burden of proof under Section 123 of the Customs Act. The Tribunal found that the claimants had adequately discharged this burden, making the confiscation and imposed penalties unsustainable.
Legal practitioners should take note of this important precedent which strengthens the rights of owners and underscores the necessity for customs to adhere to due process in seizure situations.
Citations
- Section 123, Customs Act
