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Issues involved:
The issues involved in the judgment include the release of Metal Scrap and a vehicle proposed for confiscation by the Additional Commissioner of Customs, the disposal of a Review Petition by the Commissioner (Appeals) regarding the smuggled character of the goods, and the subsequent appeals filed before the Tribunal challenging the orders. Release of Metal Scrap and Vehicle: The Additional Commissioner of Customs released the Metal Scrap and the vehicle proposed for confiscation based on various grounds. These grounds included the fact that the goods were not notified under Section 123, shifting the burden of proof to the department to prove the goods were smuggled. Additionally, it was noted that the markings on the goods were not part of any formal examination, and it was unclear if the markings were present on all the goods. The presence of foreign paper wrapping on the scraps was deemed insufficient to indicate foreign origin, especially since scrap is not a manufactured good. The lack of a detailed breakdown related to the markings and the absence of these markings in the show cause notice were also highlighted. Review Petition Disposal: The Review Petition filed by the Revenue before the Commissioner (Appeals) was dismissed as it failed to provide irrefutable evidence establishing the smuggled nature of the goods. The appellate authority found that without conclusive proof of foreign origin, the provisions of Section 111 were not applicable. Consequently, the confiscation of goods and imposition of penalties were deemed legally unsustainable. The confiscation of the vehicle under Section 115 was also considered unwarranted under the law. Appeals Before the Tribunal: Five appeals were brought before the Tribunal challenging the orders passed by the Commissioner (Appeals). The Revenue contended that an admission by the driver regarding the foreign origin of the goods, coupled with the absence of zinc or copper manufacturing units in the area, indicated the goods were smuggled. The proximity of the goods' origin to a vulnerable area further supported this claim. However, the Tribunal disagreed with these contentions, emphasizing that the mere admission of foreign origin did not automatically imply smuggling. As the goods were non-notified, the Revenue needed to provide concrete evidence of illegal entry into India. The Tribunal upheld the lower authorities' decisions, stating that confiscation cannot be based on assumptions or geographical factors. Consequently, all appeals by the Revenue were rejected.
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