2009 (9) TMI 809 - AT - Customs

Summary

Issues:
- Confiscation of seized silver and imposition of penalties based on Board Circular
- Ownership claim and purity of the seized silver
- Applicability of Customs Act Section 123 and Board Circular
- Marking on the seized silver and foreign origin
- Legal import of silver bullion to India
- Sustainability of the impugned order based on submissions

Confiscation of Seized Silver and Imposition of Penalties:
The Commissioner (Appeals) set aside the confiscation of seized silver and penalties based on a Board Circular dated 11-6-1990. The Tribunal remanded the matter to the adjudicating authority, who again set aside the confiscation after considering various Tribunal decisions. The appellant contended that the impugned order was not sustainable due to the recovery of 13.886 Kgs. of silver from the individual.

Ownership Claim and Purity of Seized Silver:
The Revenue argued that the ownership claim of the silver by Braj Bihari Prasad, based on it being melted old silver ornaments, contradicted the purity test results from the Mint, showing a purity of 998.3. The onus was on the respondents to prove the legal import of the silver bullion to India under Section 123 of the Customs Act.

Applicability of Customs Act Section 123 and Board Circular:
The respondent contested that the silver had no foreign marking and was less than 100 Kgs., making it exempt from confiscation as per the Board Circular. They cited a previous Tribunal decision where confiscation was set aside under similar circumstances.

Marking on Seized Silver and Foreign Origin:
The respondent argued that the seized silver had no marking, and the Mint certificate did not indicate foreign origin. They relied on the absence of foreign marking and the weight being less than 100 Kgs. to support their claim against confiscation.

Legal Import of Silver Bullion to India:
The Revenue emphasized the notification of silver bullion under Section 123 of the Customs Act and the need for proof of legal import, especially when the silver bore no foreign marking. The respondent's claim was assessed in light of the legal provisions and the Board Circular.

Sustainability of the Impugned Order Based on Submissions:
The Tribunal upheld the impugned order, citing the absence of foreign marking on the seized silver and the applicability of the Board Circular. Referring to a previous decision in a similar context, the Tribunal found no infirmity in the impugned order and dismissed the appeals accordingly.