2009 (7) TMI 970 - AT - Customs

Summary

The Appellate Tribunal CESTAT, KOLKATA, in the 2009 (7) TMI 970 - CESTAT, KOLKATA judgment, heard an appeal represented by Shri Arijit Chakraborty, Advocate, for the Appellant, and Shri A.K. Sharma, JDR, for the Respondent. The appeals were filed against a common impugned order concerning the confiscation of 792 Kgs. of metal scraps on the grounds of smuggling into India, along with the confiscation of the vehicle from which the goods were seized. The Appellants contended that the metal scrap was lawfully purchased and not smuggled, as it consisted of broken utensils and was not classified as notified goods under Section 123 of the Customs Act, 1962. They argued that the burden of proof lay with the Revenue to demonstrate smuggling, which they failed to do with any evidence. The Appellants presented a Trade Certificate as evidence of their legitimate trade in metal scrap. The Respondent argued that the Appellants failed to provide evidence of lawful procurement of the goods, as they only claimed ownership 15 days after the seizure, and thus the confiscation was justified.

The key issue at hand was whether the metal scrap was subject to confiscation due to alleged smuggling into India. Since the scrap was not classified as notified goods under Section 123 of the Customs Act, the burden of proof rested with the Revenue to establish smuggling. In this case, there was a lack of both documentary and oral evidence indicating that the scrap was smuggled. The Trade Certificate presented by the Appellants, which was not disputed by the Revenue, supported their claim of legitimate trade in scrap. Consequently, the impugned order was overturned, and the appeals were allowed, with the Appellants entitled to any consequential reliefs as per the law. The judgment was pronounced and dictated in open court by Shri S.S. Kang, J. and both appeals were taken up together due to the common impugned order.