TMI Blog2016 (9) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... he fact that such stock taking process stands challenged, by adopting the fact that there is no evidence on record to show that such excess found stock was meant for clandestinely removal, in which case, action against the assessee was not appropriate. As regards the confiscation of the seized Indian currency , I find that the same was seized from the residential premises of the son of General Manager. In spite of the fact that no notice was issued to the person from whose possession the currency was seized, to confiscate the currency on the assumption that the same represents the sale proceeds of the goods cleared and sold by the manufacturing unit without there being any evidence to that effect and without there being any duty demand i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry premises also resulted in excess stock of 286.235 MT of sponge iron under belief that the said stock was meant for clandestinely removed and as such , have not been entered in the record, the same were seized by the officers. 3. Simultaneously, residential premises of Shri Praksh Chandra Mundra, General Manager were also put to search. During search of residential premises, cash amount of ₹ 4.95 lakhs along with one laptop, two pen drives , a cash book and note book were also recovered. Proceedings were recorded in panchnama dated 2.9.2013 and the recovered cash was seized on the belief that the same was sale proceeds of clandestinely removed goods and as such liable to confiscation under Section 129 of the Customs Act, 1962 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not considered and as such, the excess has been incorrectly arrived at. They further submitted that there is no statement of any authorized person to the effect that such excess quantity of the final product was not entered in the record with any mala fide on the part of the assessee so as to clear the same without payment of duty. As regards the seizure of cash, the appellant contested that the same was owned by Shri Atul Prakash Mundra, son of Shri Prakash Chandra Mundra, a share broker. The show cause notice has neither been served to Shri Prakash Mundra nor Shri Atul Prakash Mundra proposing confiscation of Indian currency seized from their residence, from where the same was recovered. As such, to confiscate the said stock on the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relied upon documents where no sign of panchas appears. 8. I find that the law as regards confiscation of excess stock of goods almost stands settled. The same cannot be confiscated on the mere conclusion of non-entry of goods in the statutory documents, unless there is evidence that such stock was not entered in RG-1 register either deliberately or on the mala fide intention to remove the same clandestinely. Admittedly, in the present case, it is not the Revenue s case that the goods were in process of being removed. Apart from the fact that such stock taking process stands challenged, by adopting the fact that there is no evidence on record to show that such excess found stock was meant for clandestinely removal, in which case, ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regards the confiscation of the seized Indian currency , I find that the same was seized from the residential premises of the son of General Manager. In spite of the fact that no notice was issued to the person from whose possession the currency was seized, to confiscate the currency on the assumption that the same represents the sale proceeds of the goods cleared and sold by the manufacturing unit without there being any evidence to that effect and without there being any duty demand in respect of such clandestinely removed goods is neither proper nor justifiable. It is well settled law that onus to prove that currency in question represents sale proceeds of clandestinely removed goods lies heavily on the Revenue and is required to be di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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