2005 (5) TMI 519 - AT - Customs

Summary

Issues:
1. Contesting correctness of common Order-in-Appeal dropping proceedings and penalties.
2. Seizure of Supari bags at Town Booking Station.
3. Genuine documents produced by consigner.
4. Opinion on smuggled character of goods.
5. Lack of foreign origin indication on goods.
6. Reversal of confiscation and penalty imposition by Commissioner (Appeals).

Issue 1: Contesting correctness of common Order-in-Appeal
The Revenue contested the correctness of the impugned common Order-in-Appeal where the Commissioner of Customs (Appeals) dropped the proceedings and penalties imposed by the adjudicating authority of Rs. 6,000/- each on the respondents. The Revenue challenged this decision, leading to the appeals before the Tribunal.

Issue 2: Seizure of Supari bags at Town Booking Station
Customs Officers seized twelve bags of Supari found at the Town Booking Station in Varanasi on a specific date. The consigner of the goods was identified as M/s. Sandeep Supari Centre, Ballia, and the consignee was M/s. R.K. Trading Co., owned by the respondent, Bihari Lal. The goods were seized, leading to further investigation and proceedings.

Issue 3: Genuine documents produced by consigner
M/s. Sandeep Supari Centre, the consigner, admitted to booking the goods from Ballia for delivery to the respondent, Bihari Lal. They also disclosed purchasing the goods from Ashok Saha of Assam and provided relevant documents to support the purchase. These documents were found to be genuine, establishing the authenticity of the transaction between the consigner and the respondent.

Issue 4: Opinion on smuggled character of goods
During the investigation, an opinion was sought from two traders regarding the smuggled character of the goods. However, this opinion alone could not serve as the sole basis for the seizure of the goods and initiation of proceedings against the respondents for smuggling. The absence of foreign marks of origin on the goods and the lack of indication of foreign origin on the bags raised doubts regarding the goods' smuggling status.

Issue 5: Lack of foreign origin indication on goods
The goods seized did not bear any foreign mark of origin, and the bags containing the goods did not display any stickers or indications of foreign origin. Additionally, at the time of the incident, the goods were not classified as notified goods under Section 123 of the Customs Act. These factors contributed to the uncertainty surrounding the foreign origin of the goods and the allegation of smuggling by the respondents.

Issue 6: Reversal of confiscation and penalty imposition by Commissioner (Appeals)
The Commissioner (Appeals) reversed the order of the adjudicating authority regarding the confiscation of the goods and the imposition of penalties on the respondents. The lack of tangible evidence proving the foreign origin of the goods led to the reversal of the initial decision. The Tribunal upheld the Commissioner's decision, finding no illegality in the impugned order and subsequently dismissed the appeals.