Case Law Details
Commissioner of Customs Vs Lalit Krishna Agrawal (CESTAT Kolkata)
CESTAT Kolkata held that confiscation of boondi silver and silver jewellary alleging it to be smuggled goods without any evidence to allege that these are third country origin is unsustainable in law.
Facts- During search 79.58 kgs. of Silver Jewellary, 50 Kgs. of Silver Boondi, Indian Currency amounting to Rs.79,00,000/- and some documents were recovered. On demand of value paper in support of legal importation of the third country ornaments, Silver Boondi and Silver Articles, Cash Books, Stock Register and other relevant documents, the said Noticee could not produce the same. Further, the said Noticee also could not produce documents in support of possession of huge amount of cash. The officer, after thorough examination and in absence of any satisfactory reply/documents and after recovery of 3rd country ornaments, Silver Boondi and Cash (in INR) effected the seizure of recovered goods of third country along with the recovered Indian Currency of Rs.79,00,000/- in presence of the independent witnesses and the said Noticee under proper Panchnama under Unit Case No.04/2019-20 dated 22.10.2019. The recovered Indian Currency of Rs.79,00,000/- was also seized u/s. 110 of the Customs Act, 1962 on reasonable belief that the huge Indian Currency is the sale proceed of the smuggled goods and illegal trade of the said Noticee.
Thereafter, a show-cause notice dated 21.07.2020 was issued to the respondent for absolute confiscation of Silver Jewellary, Silver Boondi & Indian Currency and to impose penalty on the respondent.
The Adjudication took place and the goods recovered was absolutely confiscated and the Indian Currency was also confiscated and penalty of Rs.20.00 lakhs was also imposed. Commissioner (Appeals) set aside the adjudication order and held that the seized goods are not liable for confiscation and the Indian Currency is not liable for confiscation and penalty imposed on the respondent was also set aside. Being aggrieved, revenue has preferred the present appeal.
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