2005 (4) TMI 429 - AT - Customs

Summary

Issues:
1. Confiscation of goods intercepted by Revenue authorities.
2. Imposition of penalty on the driver of the car.
3. Appeal against the order-in-appeal by the Revenue.
4. Allegation of bringing foreign origin goods into India in violation of Customs Act.
5. Examination of evidence regarding the purchase of goods.
6. Burden of proof on Revenue to show goods are smuggled.

Analysis:
1. The case involved the interception of a car by Revenue authorities on 2-9-2000, resulting in the recovery of miscellaneous goods of foreign origin valued at Rs. 2,84,100. The goods included mobile phones, VCDs, and chargers. The driver of the car, Shri Raj Kumar Dabra, stated that he did not have bills at the time but would produce them later. Subsequently, a show cause notice was issued, leading to the confiscation of goods and imposition of a penalty of Rs. 10,000 by the adjudicating authority.

2. On appeal, the Commissioner (Appeals) allowed the appeal filed by the respondents. However, the Revenue filed a present appeal against this order-in-appeal, contending that the import of foreign origin goods into India is prohibited under Section 11 of the Customs Act, making them liable for confiscation. The Revenue argued that Shri R.K. Dabra failed to produce any documents during the recovery and that the car used for transportation of these goods was also liable for confiscation.

3. The Tribunal found that the goods recovered were not notified under Section 123 of the Customs Act. Therefore, the Customs authorities needed to demonstrate that the goods were of smuggled nature. The Commissioner (Appeals) set aside the adjudication order, noting that the present respondents had produced documents about the purchase of the goods, which were ignored by the adjudicating authority. The Tribunal emphasized that the onus was on the Revenue to prove that the goods were smuggled, as per Section 123 of the Customs Act.

4. As there was no evidence presented to establish that the goods were of smuggled nature, the Tribunal found no fault in the impugned order. The appeals were dismissed, upholding the decision of the Commissioner (Appeals) in favor of the respondents. The judgment was dictated and pronounced in open court on 25-4-2005.