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Issues:
Confiscation of mobile phones and Indian currency, imposition of redemption fine, customs duty, and penalty under Customs Act, 1962. Detailed Analysis: 1. Confiscation of Mobile Phones and Indian Currency: The Commissioner of Customs, Mumbai, confiscated mobile phones of foreign origin valued at Rs. 30,08,500 with an option for redemption on payment of a fine of Rs. 6.00 lakhs, along with customs duty. Additionally, Indian currency of Rs. 2.00 lakhs was confiscated under Section 121 of the Customs Act, 1962. The appellant's premises were searched, resulting in the recovery of mobile phones and currency believed to be related to smuggling activities. 2. Post-Seizure Investigation and Statements: Following the interception of a passenger carrying foreign currency, investigations led to the search of the appellant's shop premises where mobile phones and Indian currency were seized. The appellant admitted to purchasing mobile phones from the grey market without paying customs duty, indicating knowledge of their illegal importation. Despite denying involvement with the intercepted passenger, the appellant's statements revealed details about the purchase and possession of the smuggled goods. 3. Contentions and Defence: During adjudication, the appellant claimed technical expertise in mobile phones and argued that the seized items were for trading purposes, disputing their valuation and legality of possession. The appellant contended that mobile phones were freely importable under the Exim Policy and not restricted under customs laws. However, these arguments were dismissed by the adjudicating authority, leading to the appeal. 4. Adjudication and Decision: The Commissioner relied on the appellant's statements acknowledging the illegal nature of the purchased goods, shifting the burden of proof to the appellant to demonstrate legal acquisition. Lack of documentary evidence and discrepancies in the appellant's defense led to the upheld confiscation of mobile phones. However, regarding the Indian currency, the absence of evidence linking it to smuggled goods resulted in its release. The case was remanded for recalculating duty and redemption fine based on correct valuations. 5. Judicial Precedents and Conclusion: Citing legal precedents, the judgment emphasized the need to establish specific criteria for linking currency to smuggled goods. As the tests were not met in this case, the Indian currency was deemed unrelated to smuggling activities. The partial allowance of the appeal and remand for further assessment highlighted the importance of accurate valuation in determining duty and fines, leaving the penalty decision to the Commissioner. In conclusion, the judgment addressed issues of confiscation, redemption, duty, and penalties under the Customs Act, emphasizing the burden of proof on the appellant regarding the legality of seized goods while providing clarity on the release of Indian currency based on established legal principles.
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