2010 (3) TMI 964 - AT - Central Excise

Summary

Issues:
- Seizure of consignment believed to be of foreign origin
- Confiscation and penalty imposed by the original authority
- Appeal by the Department against the Commissioner (Appeals) order
- Dispute regarding the origin of the seized goods
- Lack of evidence to prove foreign origin of the goods

The judgment revolves around the seizure of a consignment containing scrap of copper wires and brass and steel scrap, believed to be of Nepalese origin, intercepted en route at a railway station in India. The original authority ordered absolute confiscation of the goods and imposed a penalty, which was challenged by the party resulting in the Commissioner (Appeals) setting aside the original order. The Department appealed against the Commissioner's decision, arguing for the restoration of the original authority's order.

The key contention in the case was the origin of the seized goods, with the Department alleging Nepalese origin based on the nature of packing and lack of evidence to prove otherwise. However, the Advocate for the respondent argued that the consignment was booked from one Indian railway station to another, with no conclusive evidence linking it to Nepal. The Tribunal noted that the goods were procured locally from villages, not falling under notified goods under the Customs Act. The Tribunal emphasized the lack of evidence supporting the foreign origin claim, highlighting the absence of investigation at the consignee's end.

Ultimately, the Tribunal upheld the Commissioner (Appeals) decision, stating that the Department failed to substantiate that the scrap was of foreign origin. The appeal by the Department was rejected based on the lack of conclusive evidence linking the seized goods to Nepal, thereby affirming the decision of the lower authority.