Author: Khushi J Prajapati
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, ruled that exchanging money without issuing an invoice does not constitute an attempt to improperly export goods.
The tribunal found that there was insufficient evidence to ascertain whether Gurpreet Singh had any part in this crime by merely relying on the phone records or verbal words or statements made by persons namely Shri Suneet Kalra and Shri Rajinder Kalra.
The Tribunal held that even if he had been changing foreign currency without issuing invoices, this did not amount to an attempt to wrongfully export products. The absence of invoices was a regulatory challenge rather than a crime.
The bench concluded that penalties under sections 114 114AA and 117 of the Customs Act were not applicable as there was no evidence of Gurpreet Singh’s involvement in illegal export attempts.
The appeal was allowed and the penalties imposed on Gurpreet Singh were set aside.
FACTS
On 30.08.2017, IGI Airport, New Delhi witnessed the interception of Shri Suneet Kalra and Shri Rajinder Kalra in possession of 1700 grams of gold jewelry illicitly acquired.
They confessed to acquiring the gold in Dubai by use of foreign currencies obtained from Gurpreet Singh, also known as Sonu who trades under M/s. Jyoti Money Exchange (P) Ltd. They claimed to have bought foreign currency against cash (INR) without any lawful documentation for cash purchases.
Consequently, a search was conducted at the appellant’s office whereby foreign currencies equivalent to INR 16,11,666 were seized from that place. The Customs Department accused Gurpreet Singh of facilitating illegal exportation of foreign currencies which subsequently led to the nationalization of gold flouts.
Case Details
Case no.: Gurpreet Singh Alias Sonu v. Commissioner of Customs (Appeals), New Delhi
Court: Customs, Excise & Service Tax Appellate Tribunal, New Delhi, Principal Bench – Court No. IV
Case Number: Customs Appeal No. 52125 of 2022 [SM]
Date of Decision: 02.08.2024
Judgment By: Hon’ble Dr. Rachna Gupta, Member (Judicial)
Appellant’s Representation: Ms. Harsimran Kaur and Ms. Prabjyoti K. Chadha, Advocates
Respondent’s Representation: Shri Rohit Issar, Authorized Representative
