Surendra Kumar Jain Vs Commissioner of Customs (Preventive) (CESTAT Allahabad)
The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad, arose from an order passed by the Commissioner (Appeals), Customs, CGST & Central Excise, Lucknow, which upheld the confiscation of a consignment of betel nuts, seizure of the transporting vehicle, and imposition of penalty on the appellant.
The case originated from an interception carried out by officers of the Customs (Preventive) Division, Gorakhpur, on 18.09.2019. A truck transporting goods from Assam to Delhi was intercepted near the Basti toll plaza. During inspection, 8,890 kilograms of betel nuts packed in jute sacks were recovered. The driver produced tax invoices, two copies of an e-way bill dated 11.09.2019, and other documents showing that the goods belonged to M/s A.K. Enterprises, Nalbari, Assam, and were being transported from Assam to Delhi.
Despite the documents produced, Customs officers formed a belief that the betel nuts were of foreign origin. Samples were shown to local betel nut vendors, who opined that the goods did not appear to be of Indian origin. Based on this local market opinion and the officers’ belief, the entire consignment of 127 bags was seized.
The appellant stated that the betel nuts were purchased on 03.10.2019 from traders in the Nalbari betel nut mandi and that mandi cess had been paid. A show cause notice was issued, and the adjudicating authority ordered confiscation of the seized betel nuts with an option to redeem them on payment of a redemption fine of ₹5,25,000. The vehicle was also confiscated with a redemption fine of ₹1,00,000, and a penalty of ₹4,00,000 was imposed under Section 112 of the Customs Act, 1962.
