2003 (7) TMI 507 - AT - Customs

Smuggling - Seizure of alarm clocks of foreign origin from a retail dealer - Proof of legal import

Summary

Issues:
1. Confiscation of goods under Section 111(d) of the Customs Act.
2. Challenge to the order based on legality and facts.
3. Requirement of license for import.
4. Burden of proof on possessor for legal import.
5. Rejection of invoice and bill.
6. Appellant's status as a retail dealer.
7. Applicability of Section 123 of the Customs Act.
8. Evidentiary value of statements.
9. Enforcement of import restrictions on retailers.
10. Inclusion of alarm clocks under relevant sections.
11. Conclusion and relief granted in the appeal.

Issue 1:
The goods, 2400 'FUDS' make Alarm Clocks, were confiscated under an adjudication order dated 23-10-2000 for being illegally smuggled into India, leading to the challenge by the appellant.

Issue 2:
The appellant contested the order on the grounds of legality and facts, arguing that the Clocks were eligible for restricted import, purchased from a specific individual with supporting documents, and that his initial statement was extracted under duress.

Issue 3:
The requirement of a license for import was highlighted by the respondent, emphasizing the lack of evidence for legal import at the time of seizure and the subsequent production of an invoice of a later date.

Issue 4:
The burden of proof regarding legal import was discussed, considering the appellant's status as a retail dealer and the lack of expectation for him to provide such proof in normal circumstances.

Issue 5:
The rejection of the invoice and bill was based on discrepancies in dates and the appellant's initial statement of not having any bill or invoice, raising doubts about the evidentiary value of these documents.

Issue 6:
The appellant's status as a retail dealer was emphasized, arguing that retailers are not the appropriate level for Customs authorities to enforce import restrictions, as it disrupts business without significant law enforcement gains.

Issue 7:
The applicability of Section 123 of the Customs Act was debated, with a focus on whether alarm clocks fell under the specified categories and the burden of proof on the possessor for legal import.

Issue 8:
The evidentiary value of statements made by the appellant and others was questioned, especially regarding the correct date of the invoice and the circumstances under which certain statements were provided.

Issue 9:
The enforcement of import restrictions on retailers was criticized as disproportionate to the level of compliance expected from small retail dealers like the appellant.

Issue 10:
The inclusion of alarm clocks under relevant sections of the Customs Act was analyzed, with a conclusion that the entry for 'electronic goods' could not be applied to alarm clocks without sufficient evidence.

Issue 11:
In conclusion, the appeal was allowed, setting aside the impugned order and providing consequential relief to the appellant, highlighting the successful challenge to the confiscation based on the detailed legal analysis presented.