TaxTMI 
TaxTMI 
2000 (11) TMI 580
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....it redeemed against redemption fine of Rs. 50,000/- each. The above redemption fines in respect of betel nuts and in respect of trucks has been ordered to be appropriated from the security deposits made by the appellants at the time of provisional release of the goods. Apart from the foregoing, following penalties have been imposed upon the various persons : (a) Sri Shiv Karan Maurya (owner of truck No. 9819) Rs. 50,000/- (b) Sri Triloki Nath Maurya (holder of PA of M/s. Kumar Enterprise) Rs. 50,000/- (c) Sri Dinanath Maurya (owner of M/s. Ajoy Transport) Rs. 50,000/- (d) Sri Ramakanth Shah (clerk of M/s. Ajay Transport) Rs. 10,000/- (e) Sri Nath Maurya (owner of truck No. 2619) Rs. 10,000/- (f) Sri Satya Narain A....
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....h was to the effect that the betel nuts appeared to be a foreign origin. However, the said dealer's letter denied to have given any such opinion. Thereafter, about a gap of 45 days of seizure, fresh samples were drawn in the presence of witnesses and the opinion of the two traders of Varanasi was obtained. 4. During post seizure investigations statements of various persons including the owner of the goods and the consignees as shown in the documents produced by the drivers on the spot were recorded. The consignor, M/s. Kumar Enterprises produced the various purchase documents of the goods in question and took a stand that the said goods were purchased from various traders of Assam. The consignees of the goods in question M/s. Jain Sup....
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.... officer held the same to be of Burmese origin without showing as to how the goods had reached Assam from Burma. It has also been contended that when the trucks were on their way to Gorakhpur Customs offices of Raiganj, West Bengal checked the goods on 24-6-1999 and found the contents to be in order by signing on the back of consignment notes and bills. It has been further argued that Shri Trilokinath Maurya, power of attorney holder of M/s. Kumar Enterprises in its affidavit dt. 21-8-1999 has specifically stated that Assam Supari in question was purchased from open market of Bijayanagar and cess payable thereon was paid to the marketing inspector vide receipts in form 'K' dt. 16-6-1999 and return of daily purchase and sale dt. 16-6-1999 we....
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....eized betel nuts to be of foreign origin basing upon the questionable second trade opinion obtained at Varanasi. 9. Shri Bhattacharjee has also referred to a number of Tribunal's decisions which are to the effect that mere foreign origin does not establish smuggled nature of the goods, which is required to be proved by evidences. He also submits that the betel nuts are neither notified under Chapter (IV) nor covered by Section 123 of the Customs Act. Hence the onus to prove this smuggled nature of the same was with the Revenue which was not being discharged properly. He has made reference to various number of decisions of the Tribunal as also of the High Court. 10. In these circumstances he submits that inasmuch as there is noth....
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....expert opinion so as to establish the foreign origin of the goods beyond doubt and reliance on the same was not sound. As such following the ratio of the decision we hold that no sufficient material exist on record to establish the foreign character of the betel nuts in question. 13. It is also seen that the betel nuts are non-notified items under the provision of Section 123 and as such the onus to establish that the same has been smuggled from a foreign country lies heavily upon the department. The Tribunal in the case of Hindustan Bearing Corpn. v. CC - 1990 (50) E.L.T. 91 (T) has held that the mere fact that the goods were foreign in origin is not sufficient to hold that they are smuggled goods and the failure of the possessor to ....