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Issues: Smuggled goods presumption based on price difference, lack of evidence for illegal entry, confiscation based on assumption, failure to prove smuggled nature or foreign origin.
In this judgment by the Appellate Tribunal CESTAT, KOLKATA, the primary issue revolved around the presumption of goods being smuggled based on price difference and the lack of concrete evidence to support this claim. The appellant had purchased Copper scraps locally from various workshops, and the Commissioner of Appeals had drawn an arbitrary presumption regarding the nature of these goods. The appellant argued that the Department failed to prove the smuggled or foreign origin of the goods under Section 123 of the Customs Act, 1962. It was emphasized that since the goods were neither restricted nor prohibited, their movement within the country could not be challenged or restricted. The appellant highlighted the absence of evidence against them and referred to a relevant case to support their stance. The second issue addressed in the judgment was the lack of evidence to establish that the Copper scrap had entered India illegally. The Tribunal noted that since Copper scrap was not a notified item, the burden fell on the Revenue to provide substantial evidence demonstrating the illegal entry of the goods. It was emphasized that confiscation could not be justified merely on assumption or presumption. The Tribunal pointed out the absence of any concrete evidence indicating that the goods were smuggled or imported from Nepal. The Revenue's attempt to draw a presumption of the goods being smuggled based on price difference was deemed impermissible. The Tribunal highlighted the Revenue's failure to meet the obligation of proving the smuggled nature of the goods or their third-country origin, echoing a similar sentiment expressed in a previous case. Consequently, the Tribunal set aside the impugned order and allowed the appeal, granting consequential benefits to the appellant. In conclusion, the judgment underscored the importance of concrete evidence in cases involving the presumption of smuggled goods and emphasized that confiscation cannot be solely based on assumptions or presumptions. It highlighted the burden on the Revenue to prove the illegal entry of goods when they are not notified items, and the necessity of meeting the obligation to establish the smuggled nature or foreign origin of goods. The decision to allow the appeal was based on the failure of the Revenue to provide substantial evidence supporting their claims, ultimately leading to the setting aside of the impugned order in favor of the appellant.
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