Customs confiscation of three concealed gold bars upheld in Uttar Pradesh
DRI officers seized three foreign-marked gold bars hidden in shoes from bus passengers at Prayagraj. The High Court held the gold was smuggled foreign-origin gold and restored its confiscation.
This page records what the cited court, tribunal and government records say happened. Findings belong to the court or authority that made them; this register adds none of its own. Names of private individuals are withheld unless a naming gate clears them.
How we verify →Revenue appeals partly allowed; confiscation of the three gold bars restored and penalties reduced.
What happened
The High Court recorded that on 28 November 2020 DRI Lucknow officers intercepted two men on a Nagpur to Prayagraj bus at Prayagraj and recovered three yellow bars weighing 2,997 grams valued at Rs 1,43,85,600, wrapped in tape and hidden in shoes.
The High Court recorded that the two carriers stated they were carrying foreign-origin gold for delivery at Prayagraj without purchase or import documents, and a later search found silver bullion and cash at the house and shop of the jeweller who claimed the gold.
The High Court recorded that the adjudicating authority in November 2022 had ordered absolute confiscation of the gold, silver and cash with penalties, but the Commissioner (Appeals) in June 2023 and CESTAT Allahabad in April 2025 set the confiscation aside on GST invoices.
The High Court held the CESTAT finding perverse, finding contradictions on sellers, on 35 versus 38 pieces sent to a refiner, and unexplained foreign markings, and restored confiscation of the three gold bars while reducing penalties to 50%.
The news summary of the judgment said the Court kept the confiscation of the three foreign-marked bars but set aside confiscation of silver bullion and Indian cash for lack of proof of foreign origin or smuggling nexus.
What the record says
“The aforesaid three yellow coloured metal bars weighing 2,997 grams valued at Rs. 1,43,85,600/-, were wrapped in tape and concealed inside the shoes of the intercepted persons.”
CUSTOM APPEAL No. 1 of 2026, para 4(a) — read the full text
A peaceful economic act
Carrying and storing gold harmed no complaining victim; the case records no violence, fraud, minors, coercion or spurious product, only duty and import-prohibition enforcement.
What we could not confirm
Operative paragraphs at the end of the Indian Kanoon text were truncated in fetch; final result on penalties relies on the LiveLawBiz summary. Silver and cash in the same case were released for lack of proof and are not relied on for this listing.