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Issues:
1. Confiscation of goods under the Customs Act. 2. Burden of proof in cases of seized goods. 3. Applicability of Section 123 of the Customs Act. 4. Legal principles regarding non-notified goods. 5. Judicial precedent on confiscation of goods. Analysis: 1. The case involved the confiscation of goods under the Customs Act following the seizure of contraband goods from a vehicle parked in a hotel. The appellants contested the confiscation and penalties imposed by the Additional Commissioner of Customs, arguing that the goods were non-notified and freely available in the market, thus not subject to confiscation. 2. The appellants denied that the goods were smuggled and stated they had purchased them from a local market. The burden of proof fell on the Revenue to establish that the goods were indeed smuggled. The Tribunal found that the Revenue failed to discharge this burden, as the goods were non-notified and freely available in the open market. The appellants' statements were consistent with purchasing the goods from a legitimate source. 3. Section 123 of the Customs Act was deemed inapplicable in this case, as the goods were initially seized by the Police before being handed over to the Customs Department. The Tribunal held that when goods are seized by the Police and transferred to Customs, the burden of proving smuggling falls on the Revenue. The presence of foreign markings on the goods alone was insufficient to prove smuggling. 4. Legal principles regarding non-notified goods were crucial in the judgment. The Tribunal emphasized that non-notified goods purchased from the market cannot be subject to absolute confiscation. The appellants' purchase of goods from a local market was established, and the absence of proper documentation did not automatically imply smuggling. 5. The judgment relied on judicial precedents to support the appellants' argument that confiscation cannot be ordered for non-notified goods purchased from the market. The Tribunal set aside the impugned order, allowing the appeals and granting consequential relief to the appellants, including the reimbursement of the value of seized goods if already sold by the Department. In conclusion, the Tribunal ruled in favor of the appellants, highlighting the importance of proving smuggling in cases of seized goods and the legal principles surrounding non-notified goods in customs cases.
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