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Seizure of silver bars weighing less than 30 kgs, violation of guidelines, confiscation under Section 123 of the Customs Act. Seizure of Silver Bars Weighing Less Than 30 kgs: The case involved the seizure of 37 bars of silver weighing less than 30 kgs in a shop. The appellant, a jeweler, argued that he received silver from various parties to make ornaments and also manufactured silver ornaments independently. The Counsel contended that the seizure was unjustified as the silver bars did not bear foreign markings and were below 2 kgs each. The Counsel highlighted the circular directing field formations not to invoke Section 123 of the Customs Act for silver bullion under 100 kgs unless specific conditions were met. Violation of Guidelines: The Counsel argued that the proceedings were against the guidelines issued by the Central Board of Excise & Customs, which prohibited invoking Section 123 of the Customs Act for silver bullion under 100 kgs unless certain criteria were met. The Counsel referenced a Tribunal case and a High Court judgment where confiscations were set aside due to similar violations of the circular. The Counsel emphasized that the investigation and confiscation were contrary to the Government's policy on investigating cases involving silver. Confiscation under Section 123 of the Customs Act: Section 123 of the Customs Act contains special provisions for smuggling specified goods and shifts the burden of proof to the possessor of imported goods. Despite silver being one such item, the Central Government instructed not to apply these provisions for consignments under 100 kgs, especially when silver bars lacked foreign markings or were not in 30 kg blocks. The Tribunal held that the proceedings were against the Government's investigation policy outlined in the circular, similar to a previous case. Consequently, the Tribunal set aside the impugned order, directed the return of confiscated goods, and the refund of the penalty pre-deposit made by the appellants.
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