1985 (2) TMI 291 - AT - Central Excise

Summary

Issues: Appeal against order of Central Board of Excise & Customs regarding seizure of hashish from consignment, delay in proceedings, imposition of penalties.

Analysis:
1. The appeal was filed against the order passed by the Central Board of Excise & Customs regarding the seizure of hashish from a consignment. The consignment was dispatched by M/s. Bee Emm (India) Exports to the United States of America, and the seizure of hashish occurred in November 1972, with a show cause notice issued in October 1978 after a gap of 6 years. The argument presented was that there was no evidence connecting the hashish to the exporters or the proprietor of the company. The delay in proceedings was highlighted, questioning the validity of the evidence presented by the Collector.

2. The Counsel for the appellants disputed the seizure of hashish from the consignment, emphasizing that no seizure report was made available. It was argued that the evidence relied upon by the Collector, including a report from the American Embassy, was not tested, and no cross-examination of individuals was conducted. The transit route of the consignment was detailed, suggesting multiple points where unauthorized tampering could have occurred. The Collector imposed penalties based on discrepancies in the declared weight of the consignment, but the appellants contended that there was no direct evidence linking them to the seized hashish.

3. The defense argued that the delay in issuing the show cause notice and the lack of concrete evidence raised doubts about the case. The Customs authorities were criticized for the prolonged delay in processing the matter, with the show cause notice issued almost six years after the incident. The lack of action against the appellants despite the alleged seizure raised questions about the strength of the Customs' case. The Tribunal noted the absence of evidence positively identifying the Indian exporter as the shipper of the hashish, leading to the conclusion that the Customs failed to establish a clear link between the appellants and the contraband.

4. The Tribunal ultimately set aside the Collector's order and allowed the appeals of both M/s. Bee Emm (India) Exports and the proprietor, highlighting the lack of substantial evidence connecting them to the seized hashish. The decision was based on the doubts raised regarding the Customs' case, the significant delay in proceedings, and the absence of concrete proof establishing the appellants' involvement in the smuggling of hashish.