2008 (3) TMI 600 - AT - Customs

Summary

Issues involved:
Confiscation of silver slabs and chorsas, personal penalty under Sections 112(a) and 112(b) of the Customs Act, 1962.

Confiscation of Silver Slabs and Chorsas:
The judgment pertains to the confiscation of 9 silver slabs and 139 silver chorsas along with a Maruti van. The search of the residential premises led to the discovery of the silver slabs secreted in the van, which was later found abandoned. The purity of the silver chorsas was ascertained at 99.50, but no legal import documents were produced. The proceedings culminated in the impugned order by the Commissioner, leading to the challenge in the present appeal.

Personal Penalty Imposed:
The imposition of a personal penalty of Rs. 15 lakhs on Shri N.P. Soni and Rs. 10 lakhs on Shri H.P. Soni under Sections 112(a) and 112(b) of the Customs Act, 1962, was also contested. The penalty on Shri N.P. Soni was linked to the confiscated silver chorsas, which were later released, leading to the setting aside of the penalty. Similarly, the penalty on Shri H.P. Soni was based on the ownership of the Maruti van, which he claimed to have sold. The lack of further investigation by the Revenue led to the penalty being set aside for Shri H.P. Soni as well.

Detailed Analysis:
The judgment details the search of the residential premises, the seizure of the silver slabs and chorsas, and the subsequent legal proceedings initiated against the appellants. The appellant did not contest the confiscation of the silver slabs and the Maruti van, as they were not the owners. However, the challenge was directed towards the confiscation of the silver chorsas and the imposition of personal penalties.

The judgment emphasizes the importance of proving the foreign origin of goods to establish smuggling. Since the silver chorsas did not bear foreign markings, the onus was on the appellants to demonstrate legal importation. As there was no evidence of foreign origin, the benefit of doubt was extended, resulting in the release of the silver chorsas. Consequently, the personal penalties imposed on both appellants were set aside due to the release of the confiscated goods and lack of justifiable reasons for penalty imposition.

In conclusion, the judgment upholds the confiscation of the silver slabs and the Maruti van while setting aside the confiscation of the silver chorsas and the personal penalties imposed on the appellants. The decision was based on the lack of evidence regarding the foreign origin of the goods and the appellants' non-ownership of the confiscated items.