TMI Blog2023 (9) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... of smuggled goods and in an attempt to discharge the onus cast upon the under Section 123 of the Act. It is evident that the description of the purchase invoices in transit challan produced before the Hon ble High Court, Shillong did not tally with the purchase invoices recovered at the time of seizure. Since, the transit challan records did not match with the recovered purchase invoices it is clear that the transit challan too were fabricated, and presented subsequently, like various other documents and submitted as an afterthought perhaps to even mislead the judiciary; besides being a failed attempt to justify transportation of the smuggled goods. The Hon ble Supreme Court in case of KI. PAVUNNY VERSUS ASSTT. COLLR. (HQ.) , C. EX. COLLECTORATE, COCHIN [ 1997 (2) TMI 97 - SUPREME COURT] had held that a mere general corroboration is sufficient and each of the detail was not required to be gone into. It even upheld the validity of the statement, containing wealth of information that was retracted in close proximity of making it and therefore disallowed the said retraction. Thus, no case is made out by the appellants, calling for interference in the impugned order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 114 read with Order XLVII, Schedule 1 of the Code of Civil Procedure, 1908, seeking review of the direction of the Hon ble High Court dated 5.7.2019. This too was dismissed as withdrawn with liberty to the appellants to seek appropriate remedy in accordance with law, in terms of its orders dated 05.07.2019. Accordingly vide orders dated 23.10.2019 passed by this Tribunal in ROA, the final order of the Tribunal dated 29.11.2017 was recalled and the appeals restored to their original numbers. It is in this background that the present appeals have been listed for final disposal of the matter and were heard afresh by us. 2. Briefly stated on 26.08.2014. based on prior specific information, the Officers of the Railway Protection Force (RPF), intercepted four persons upon arrival at Dimapur, by train number 15960 DN Kamrup Express from bogey number S-8. Four persons intercepted, were (i) RK Templer Singh, (ii) RK Samsung Singh, (iii) Smt. T, Shantibala Devi, (iv) RK Rojita Devi. All the four accused were said to be resident of Imphal. Upon checking of their belongings and personal search, nothing incriminating was recovered from RK Templer Singh and RK Samson Singh. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d into India in violation of Section 7(1)(c) and Section 11(c) and (f) of the Act, and hence liable to confiscation under Section 111(b) and 111(d) of the act, ibid. The value of the seized gold was assessed at Rs.1,22,15,438/- only (Rs. One crore, twenty two lakhs fifteen thousand and four hundred thirty eight only). 4. In their statements recorded by the customs authorities, Rojita Devi and Santibala Devi, on 27.08.2014, confirmed that the RPF personnel had recovered 26 pieces of gold biscuits from their possession, which they had kept hidden in their jeans pant/petticoat, and that the owner of the said gold biscuit is one RK Angangbi Singh (RKAS) of Imphal, that they had received the said gold biscuits from the appellant RK Angangbi Singh on 25.08.2014 and were instructed to carry the said gold biscuits to Kolkata for delivery to him in Kolkata. Both RK Templer Singh and RK Samson Singh also reiterated and confirmed the versions of the two ladies. All the four accused were arrested by the Customs authorities, under Section 104 of the Act. On 28.08.2014, all the four accused were remanded to judicial custody, and were released on bail subsequently. 5. The follow-up inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that though he had been dealing with Rajkumar Angangbi Singh for 2-3 years, they had not dealt with R.K Angangbi Singh during the year 2014-15. Specifically to the delivery of twenty six pieces of gold biscuits to R K Angangbi Singh in the month of August 2014, it was confirmed by the Director of the firm, Magna Projects Pvt. Ltd., that they did not have any transaction with R K Angangbi Singh during 2014-15. 6. Scrutiny of the original copies of three tax invoices (duplicate seller s copy) obtained from the office of M/s Magna Projects Pvt. Ltd. by the authorities, revealed the name(s) of the foreign makers of the imported gold bars as MMTC Pamp, Rand Refinery and Argor Heraeus whereas the name(s) of the foreign makers of the imported gold bars were absent in the duplicate copies (duplicate bills) and also that the signatures given in the original copies as well as in the duplicate copies did not match with one another. 7. R.K. Angangbi Singh in his statement submitted that he had given twenty six pieces gold biscuits to Rojita Devi and Santibala Devi and sent them to Kolkata for making small gold coins while he had travelled from Imphal to Kolkata on flight on 26.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. A 502029, (iv) Invoice No. 46827/13-14 is in cut piece of gold bar inscribed SO B35732 (659.830 gm) and on the other 41.49 gm. is not written anything and only a cut piece, (v) Invoice No 40791/13-14 is in cut piece of two parts. He contended that these gold biscuits and cut pieces were made into different form as per his requirements because he could not give 1 kg bar or 50 gm bar to the goldsmiths and that he had made (Dhalai) in different sizes of biscuits and there was no number written on the said biscuits and he had sent twenty six pieces gold biscuits through the said persons approximately weighing 4334 gm. He further contended that, he used to purchase small quantity of gold in jewellery form (10 gm or 15 gm or others, of used jewellery, from local people having proper bills and documents and did not purchase local gold without documents. He emphatically stated, that, the Dhalai of the biscuits was generally done by him, his wife, younger sister and his goldsmith, at his shop and sometimes at his residence and in the instant case he, his wife and younger sister had made the Dhalai, and further his wife had done the concealment, as per his advice to keep the same secretl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ranjana and her goldsmith M. Sanjoy had also joined in the work. That, the weights of gold biscuits in Dhalai form varies from 100 gm to 170 gm but they had not done Dhalai at the shop. That, after Dhalai the gold biscuits became totally plain i.e., without mark. That, in the instant case, she and R.K Angangbi had converted the gold in biscuits form weighing 166.5 gram to 167.5 gram. That, the gold biscuits without any markings and of weight 166.5 to 167.5 gm had been sent to Kolkata for making gold jewellery like necklace sets, bangles, finger rings and earrings and coins of 5 gram to 10 gram. That, the gold biscuits recovered from Santibala and Rojita were not for sale in Kolkata. That, she had been investigated earlier also in connection with a gold smuggling case of one Mr. Saraogi. 9. R.K Ranjana Devi, in her statement dated 30.09.2014 stated that she had delivered the gold biscuits to R.K Rojita and T. Santibala as directed by R.K Angangbi Singh. That, the gold bars were concealed in the pants and undergarments. That, she did not know who modified the clothes except that it was handed over to her by Sonia Devi. That, she delivered the modified clothes but she did not giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey had not sold any gold to M/s Radhika Jewellery, Imphal during the period 2012-13, 201314 and 2014-15. That, upon verification of the records, it was ascertained that invoice No. 02082/14-15 dated 28th July 2014 was issued to R.K Angangbi Singh, of Sagolband Road, Bijoy Govinda Leikei, Imphal having PAN No. BGKPS9342A. On being asked that R.K Angangbi Singh of Sagolband, Bijoy Govinda, Near Amudon Lai, Imphal 795001, Manipur, purchaser of gold valued at Rs. 23,84,000/- had given his PAN No. BGKPS8342A in the invoice No. 72282/12-13 dated 11.03.2013 he stated that the said PAN No. was found to be non-existent as per online verification report. That, in respect of Ranjana Devi, Imphal to whom gold bar valued Rs. 8,00,000/- was sold under invoice No. 71248/12-13 dated 06.03.2013, no PAN number was provided by the customer. That, in respect of R.K Ronjana Devi, Sagolband Road, Bijoy Govinda Leikai, Imphal (West) to whom gold bar valued Rs. 50,00,000/- was sold under invoice No. 02083/14-15 dated 28.07.2014 the PAN No. furnished was given BBGPD7132J, however, as per online verification, it was seen that the PAN belonged to Raj Kumari Ranjana Devi. That, he was not able to state whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7320/13-14 dated 29.04.2013 where party name was shown as Raj Kumar Angangbi Singh showing sale of 8 kg gold valued Rs. 2.26 crore was not genuine and fake. That the rubber stamp and the paper stationery which were used for generating the fake invoice were of their company. He stated that on the date of issue of the invoice, he was not present in the office. That, the signature on the invoice signed by authorized signatory for the company was not his. That, he was not in a position to identify the person who signed the said invoice for the company. That, their Company had not purchased any gold from R.K Angangbi, Raj Kumar Angangbi Singh, R.K Sonia Devi, R. K (O) Sonai Devi, R.K Ranjana, Ranjana Devi, R.K Granites, Radhika Jewellery of Imphal, Manipur nor had they done any making of jewellery, coins etc. for the above persons, nor did they have any licence/permission for hallmarking of gold. That, R.K Angangbi Singh, R.K Ranjana Devi, R.K Sonia and Radhika Jewellery etc. of Manipur who purchased gold from their company were treated as individuals as evident from their names except Radhika Jewellery. That, the PAN No. provided by these purchasers were of individuals. That, Radhika ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods were being transported/carried from Imphal to Kolkata without any Sale Tax Challan, Seller/Invoice, Bill, etc., vi. The photocopies of three invoices said to be issued by M/s Magna Projects Pvt. Ltd., Kolkata, to Rajkumar Angangbi Singh, Imphal recovered from the 4 carriers of gold was found to be fake and forged as the goods sold under the said invoices, were found to be in the form of 1 kg bars as well as in the form of smaller biscuits. Therefore, the photocopies of the said invoices recovered/produced were not relatable and do not correspond to the said recovered twenty six pieces gold. (Gold bars, biscuits or coins are normally sold in polished/finished condition having logo/inscription/number/assayers name or purity markings etc. for in dentification, however nothing as such were there on the recovered goods nor reasons for the same could be explained by the carriers.) vii. The said invoices were for sale/transportation of gold from Kolkata to Imphal whereas, in the instant case, seized/confiscated gold was being transported from Imphal to Howrah, Kolkata. Also no consignment note/challan, nor any authority letter in support of transportation of the said gold b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by M/s Magna Projects Pvt. Ltd., Kolkata, in the name of Raj Kumar Angangbi Singh for sale of 8 kg gold and which was produced by R.K. Angangbi Singh on 9.9.2014, while claiming the seized gold is a manipulated and a void document. Therefore, it is apparent that Rajkumar Angangbi Singh had produced falsified documents in order to justify transportation of the smuggled gold. xi. R.K. Angangbi Singh in the Writ Petition filed before the Hon ble High Court of Meghalaya had claimed that the gold biscuits under seizure pertained to the stock of gold purchased vide Invoice No. 02082/14-15 dated 28.7.2014 issued in favour of R.K. Angangbi Singh, 02083/14-15 dated 28.7.2014 issued in favour of R.K. Angangbi Singh and 02084/14-15 dated 28.07.2014 issued favour of R.K. Ranjana Devi. He has thus contradicted his own statement subscribed before the Customs Officers on 9.9.2014, wherein he claimed that the seized gold were consigned from the stock pertaining to Invoice No.17320/13-14 dated 29.4.2013, 22281/13-14 dated 6.6.2013, 40791/13-14 dated 21.6.2013, 46827/13-14 dated 10.7.2013 and 18594/10-11 dated 7.1.2011. xii. Sashi Kant Shinde, Director of M/s Magna Projects Pvt. Ltd., Kol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh licit acquisition/possession of gold under Section 123 of the Act, is thus not discharged by the appellants. xiv. While the appellants, by virtue of their books of accounts have stated that they are large scale gold dealers having procured nearly 43 kgs. of gold valued at around Rs.13 crore, from Kolkata during 201314, on the other hand they ascribe their failure to manage invoices and other records to satisfactorily link the seized gold with the various sets of invoices tendered (or any licitly produced evidence), by them as to be on account of lack of man power. Thus, it belies logic, if gold over ten times the quantity of seized gold can be duly recorded in their books of accounts, what prevents in satisfactorily demonstrating proper and legitimate accountal and documentation of seized gold, if at all it ever existed. The said argument of shortage of staff is thus a mere ruse to coverup their colossal failure. xv. The statement tendered by Anand Agarwal, though retracted, is an important testimony, as it not only contains wealth of information but is also corroborative with the actual testimonies of others like his own Director, Shashikant Shinde. Also, given the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase under pseudo or closely or deceptively similar names with or without acronyms coupled with the fact that necessary licences/registerations under allied acts like Manipur VAT or the shop license issued, are all post the date of seizure; is sufficient enough to establish a mindset rich with mal intentions. xxii. That even though, were any of the invoices tendered by R.K Angangbi Singh considered to be as covering the valid sales, there has been no attempt by R.K Angangbi Singh to show as to how many of the seized biscuits were cast out by them of say a 1 kg. gold bar or the cut pieces etc. for which R.K Angangbi Singh very enthusiastically submitted the same. xxiii. The constant change in stance to establish licit ownership with not even any single given set or even any of the tendered invoices, independently or in association, able to demonstrate the valid ownership is a complete blow to the efforts of R.K Angangbi Singh in establishing his bonafides. xxiv. It is thus evident that the marks and numbers, inscriptions on the seized gold bars have been very cleverly obliterated by Raj Kumar Angangbi Singh and/or his associates, to overcome the barrier of proving its le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he back up for the back up, backs up. This malicious design of R.K Angangbi Singh has been clearly brought out by investigators. 16. It is also fascinating to note that while R.K Angangbi Singh claimed that he was sending the gold biscuits to make jewellery and small denomination gold coins at Kolkata, which contention was reiterated before the Hon ble High Court wherein he stated that he would make hallmark gold coins to sell the same at Imphal during the Nigol Chak Kouba festival in Manipur, R.K Sonia Devi has pointed out that gold was sold in jewellery and biscuits form like 5 gm and 10 gm etc. and limited gold biscuits were sold in a month. It is therefore clear that the biscuits and coins sold in the shop was limited, having weight between 5 to 10 gm. No prudent businessman would ever convert 1 kg gold bars into 166-167 gm biscuits when the market demand was for 5-6 gm gold biscuits. Rather, if at all required, one would have converted the 1 kg bar to 5-10 gm biscuits directly, if so was the need. This again establishes the complete hollowness of their arguments. 17. On the point of transit challan, R.K Angangbi Singh stated that he had issued a transit challan dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired to be discharged in law, to support legal acquisition of seized gold, it may be worthwhile to reproduce the following table from the case records to point out the multiple entities crafted by the appellants, to provide a cover for their works. Sl. No. Name Address PAN VAT/T IN Active in Financial Year 1. Raj Kumar Angangbi Singh Sagolband Bijoy govinda, Near Amudon Lai, Imphal-795001, Manipur BGKPS8 342A NIL 2012-13, 2013-14 2. R.K. Angangbi Singh Sagolband Road, Bijoygovinda Leikai, Imphal BGKPS9 342A NIL 2014-15 3. R.K (O) Sonia Devi Sagolband Amudon Leirak, Imphal NIL NIL 2012-13, 2013-14 4. R.K So ..... X X X X Extracts X X X X X X X X Extracts X X X X
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