TMI Blog2002 (7) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... d and checked at Panipat Railway Station while on his way to Amritsar where he had a permanent domicile, by the railway police (GRP) and 29 gold biscuits of different markings were recovered from him. Those biscuits were taken into possession by the police under Section 102 of the Cr.P.C. Later on, the police was contacted by the Customs Authorities for handing over those biscuits to them as the Customs Officers believed that the biscuits were imported/smuggled into country without payment of customs duty. The Customs Officers sent notice under Section 110(1) of the Customs Act to the SHO of the Railway Police on 28-11-2000 and also moved the Chief Judicial Magistrate, Panipat, for directing the police to hand over the biscuits to them. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort of his contention, he has referred to the Apex Court judgment in the case of M/s. Gian Chand Ors. v. State of Punjab, 1983 (13) E.L.T. 1365 (S.C.), wherein it has been so ruled. 4.The learned Counsel has further submitted that the appellant is a bona fide purchaser of the gold biscuits from Shri Subhash Khurana who in turn admitted of having sold the same to him after purchase from M/s. New Kailash Jewellery House, Karol Bagh, New Delhi, against payment. Therefore, no confiscation of the gold biscuits could be legally ordered. He has also submitted that even the show cause notice was issued after the expiry of stipulated period of six months from the date of seizure and as such no proceedings on the basis of that notice could be tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corresponding to Section 123 of the Customs Act, 1962). Therefore, the benefit of the provisions of Section 178A of the Sea Customs Act (corresponding to Section 123 of the Customs Act, 1962) could not be availed of to throw the burden of proving that the gold was not smuggled on the accused." 7.In the instant case, we do not find any evidence what so ever to prove that the gold biscuits were smuggled into the country without payment of Customs duty illegally. The appellant immediately, at the time of seizure of the biscuits from his possession, produced the invoice which he was carrying with him at that time, to prove that he had purchased the same from Shri Subhash Khurana. It is also evident from the record that Shri Subhash Khurana's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be legally confiscated under Section 111(d o) of the Customs Act nor any penalty could be imposed on the appellant. He is entitled to rather, the release of the biscuits being the purchaser of the same from the lawful source. 9.Apart from this, even the show cause notice issued to the appellant apparently was time barred. It has not been disputed before us that the show cause notice was required to be issued under Section 110 of the Customs Act within six months from the date of seizure. In the instant case, even if it is taken that the seizure by the Customs authorities of the gold biscuits, was only on 17-1-2000, the date when the Chief Judicial Magistrate directed the police authorities to hand over the gold biscuits to them and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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