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Issues:
1. Confiscation of silver and currency under Customs Act, 1962. 2. Burden of proof on the appellant. 3. Validity of seizure and marking on seized silver. 4. Reliance on confessional statements. 5. Confiscation of Indian and Nepali currency. 6. Compliance with foreign exchange regulations. Analysis: 1. The appellant contested the confiscation of silver and currency under the Customs Act, 1962, arguing that the seizure lacked reasonable belief, and the seized silver did not bear foreign markings as required by law. The burden of proving the smuggled nature of the silver was on the Department, and reliance on retracted statements was deemed invalid by citing relevant case laws. 2. The Department insisted that the appellant failed to prove lawful possession of the silver, leading to its rightful confiscation. The appellant's admission of the silver's foreign origin was highlighted as a key factor supporting the confiscation, emphasizing the importance of proving licit possession in such cases. 3. The issue of validity of the seizure was raised concerning the absence of foreign markings on the seized silver, contrary to circular guidelines. The appellant's case aligned with previous decisions, emphasizing the need to adhere to circular instructions, and challenging the validity of the seizure based on these grounds. 4. The reliance on confessional statements was a significant point of contention, with the appellant arguing that the statements were involuntary and retracted at the earliest opportunity. The Department's case heavily relied on these statements, which were subsequently retracted, leading to a lack of substantial evidence to support the confiscation. 5. Regarding the confiscation of Indian and Nepali currency, it was argued that the Department failed to prove that the currency was proceeds from smuggled goods. Legal provisions and circulars were cited to support the argument that the currency was not liable for confiscation under the relevant sections of the Customs Act. 6. Compliance with foreign exchange regulations was also addressed, with the appellant asserting that there was no violation of regulations based on the permissible limits and permissions granted by the Reserve Bank of India. The absence of evidence linking the currency to smuggled goods further weakened the Department's case for confiscation. In conclusion, the Tribunal found in favor of the appellant, setting aside the impugned order of confiscation and penalties. The lack of substantial evidence, failure to prove the illicit nature of the goods, and compliance with relevant circulars and regulations were key factors in the decision to allow the appeal.
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