Rajesh Kumar Jain Vs Commissioner of Customs (Preventive) (CESTAT Kolkata)
The case concerns an appeal before CESTAT Kolkata against the confiscation of betel nuts and penalties imposed on the appellants under Section 112 of the Customs Act, 1962. The dispute arose when Appellant No. 1 sold 150 kgs of betel nuts to Appellant No. 2 through Tax Invoice No. 000792 dated 28.09.2020. The goods were transported via a public bus from Siliguri to Purnia, with the transportation challan and tax invoice handed to the bus conductor. On 29.09.2020, Customs Officers of the Raigunj Customs Preventive Unit intercepted the bus and seized a total of nine bags of betel nuts. The bus conductor confirmed possession of documentation for only three bags totaling 150 kgs.
During investigation, the appellants maintained that they were responsible for only 150 kgs of betel nuts. Nevertheless, the Revenue issued a show-cause notice, presuming the entire 500 kgs belonged to the appellants, resulting in the confiscation of all recovered betel nuts and penalties on both appellants.
On appeal, the appellants argued that proper documentation confirmed ownership of only 150 kgs, while they were not claiming the remaining 350 kgs. They contended that the confiscation of the full quantity and penalties were unjustified as the Revenue’s action was based purely on presumption without supporting evidence.
