2007 (4) TMI 50 - AT - Customs

Confiscation and penalty Alleged that MS waste and scrap received by appellant not entered in their RG 23Dregister and accordingly imposed redemption fine and penalty Held that the said activity can t constitute an offence and set aside the fine and penalty

Summary

Issues:
- Absolute confiscation of 31 silver bars
- Imposition of penalty under Section 112(b) of the Customs Act, 1962

Analysis:
The appellant contested the absolute confiscation of 31 silver bars and the penalty imposed on him on various grounds. The appellant argued that the show cause notice was self-contradictory and prejudicial, failed to consider key aspects, and lacked evidence to prove illicit origin. The appellant also challenged the burden of proof, benefit of doubt extended to another individual, and the incorrect reliance on certain decisions by the adjudicating authority. Moreover, the appellant questioned the reasoning behind the absolute confiscation and imposition of personal penalty based on mere suspicion or imaginary grounds.

The ld. DR countered the appellant's arguments by highlighting the lack of explanation regarding the licit possession of the silver bars by the current appellant. The ld. DR emphasized that the appellant failed to provide evidence supporting legitimate possession, especially in light of the recovery of the silver bars from him. The ld. DR pointed out discrepancies in the appellant's statements and the absence of documentary evidence to substantiate the licit procurement of the silver bars.

Upon considering the submissions and evidence, the Tribunal found that the appellant could not produce any documentary evidence proving the licit possession of the silver bars. Despite cross-examinations and opportunities to present evidence, the appellant failed to demonstrate legitimate procurement of the silver bars. The Tribunal noted that the burden of proof under Section 123 of the Customs Act had not been discharged by the appellant, leading to the conclusion that the absolute confiscation was justified. Since the appellant did not provide evidence of licit possession, the penalty imposed was deemed appropriate and in accordance with the law.

Conclusively, the Tribunal dismissed the appeal, stating that the impugned order was correct and did not warrant any interference. The decision upheld the absolute confiscation of the silver bars and the imposition of the penalty on the appellant due to the lack of evidence supporting licit possession, thereby affirming the legality of the actions taken against the appellant.