CESTAT says Gold Cannot Be Confiscated on Suspicion Alone

Gold biscuits recovered from a passenger at Guwahati Railway Station were confiscated on the allegation of smuggling, despite the production of purchase invoices tracing the gold to auctioned jewellery. CESTAT held that Customs could not rely merely on another agency's seizure and suspicion of foreign origin without independently forming a reasonable belief. It ordered release of the gold and set aside the penalties.