1995 (12) TMI 335 - AT - Customs

Summary

Issues:
1. Seizure of silver bars under the Customs Act.
2. Allegations of smuggling and contravention of Customs Act provisions.
3. Finding of lower authorities regarding the origin of the seized silver.
4. Contravention of Notification Nos. 50 and 51 under the Customs Act.
5. Imposition of redemption fine and penalties.

Analysis:

1. The appellant, Shri Chail Singh, was found with 7.532 Kgs of silver bars tied around his waist at a railway station. The silver was seized under Section 110 of the Customs Act on suspicion of smuggling from Pakistan. The appellant claimed the silver was given to him for delivery by another individual. The Deputy Collector held the silver was smuggled, leading to its confiscation and imposition of penalties.

2. The appellant contested the allegation of smuggling, arguing that the silver had no foreign markings and the proximity to the border was not conclusive evidence. However, the authorities based their conclusion on the purity of the silver and its proximity to the Indo-Pak border. The appellant's contention against the smuggling charge was not accepted by the lower authorities.

3. The contravention of Notification Nos. 50 and 51 was a key issue. The notifications specified restrictions on the transportation of silver within a 50 Km area from the border without proper documentation. The appellant's argument that Barmer was beyond the specified area was refuted as the silver originated from Jaisindhar, within the restricted zone. The authorities found the contravention of the notifications valid.

4. The judge opined that a redemption fine should have been imposed by the lower authorities considering the circumstances and the increase in silver prices since the purchase in 1979. A redemption fine of Rs. 18,000 was fixed, and the penalties imposed on the appellants were upheld as justified. The judge found no reason to interfere with the penalty orders.

5. In conclusion, the appeals were disposed of with the affirmation of the confiscation of silver, imposition of penalties, and the fixing of a redemption fine. The judgment highlighted the importance of complying with Customs Act provisions and the consequences of contravening notification requirements in restricted areas.