2020 (9) TMI 525 - AT - Customs

Smuggling - Provisional release of seized goods - Betel Nuts and Black Pepper - prohibited goods or not - evidence with revenue to establish that the same were smuggled into the country or not - HELD THAT - There are no evidence to establish that the goods which were moved within the country, were smuggled in the country and therefore, it was high handedness on the part of revenue to have detained the said goods not released the same inspite of the order of learned Commissioner (Appeals). The appeal filed by Revenue is dismissed - Further, Revenue is directed to release Black Pepper and Betel Nuts to the respondents by 15 March, 2020.

Summary

Issues:
1. Provisional release of Betel Nuts & Black Peppers
2. Allegation of smuggling without evidence
3. Detention of goods by revenue
4. Interpretation of Customs Act, 1962
5. Application of case law

Analysis:

1. The case involved a Miscellaneous Application seeking a stay on the operation of the Order-in-Appeal allowing provisional release of Betel Nuts & Black Peppers. The Commissioner (Appeals) had ordered the release, stating that the goods were not prohibited under the Customs Act, 1962, and there was no evidence of smuggling.

2. The revenue, represented by the Authorized Representative, argued that no show cause notice was issued, the matter was under investigation, and Poppy Seeds, a restricted item, were also seized along with the Betel Nuts & Black Peppers. Reference was made to a decision of the Hon'ble Madras High Court in a related case.

3. The respondent's Counsel contended that the goods were being transported domestically from Guwahati to Delhi, inspected at Lucknow, and detained without evidence of smuggling. They emphasized that Betel Nuts and Black Pepper were not prohibited or restricted items under the Customs Act, unlike Poppy Seeds, and distinguished the case law cited by the revenue.

4. Upon review, the Tribunal found no evidence of smuggling in the domestic movement of the goods. The Tribunal criticized the revenue for detaining the goods despite the lack of evidence and upheld the Commissioner (Appeals) decision for provisional release. The appeal by the revenue was dismissed, and the revenue was directed to release the goods to the respondent by a specified date.

5. The Tribunal's decision was based on the interpretation of the Customs Act, 1962, and the lack of evidence of smuggling in the case at hand. The application of the case law cited by the revenue was deemed inapplicable to the goods involved, further supporting the decision for the provisional release of Betel Nuts & Black Peppers. The Miscellaneous Application was rejected as it became irrelevant after the main decision.