2001 (9) TMI 195 - AT - Customs

Summary

Issues: Confiscation of betel-nuts, confiscation of vehicles, imposition of penalties

Confiscation of Betel-nuts:
The case involved the confiscation of betel-nuts valued at approximately Rs. 34.36 lac due to suspicions of smuggling from Nepal. The Customs Officers intercepted trucks loaded with betel-nuts, leading to the seizure. Statements were recorded from individuals involved in the transaction, including the owner of the goods. The Commissioner of Customs issued show-cause notices proposing the confiscation of betel-nuts and trucks. The appellants argued that the betel-nuts were of Indian origin and challenged the foreign origin claim based on inscriptions found on the bags. The appellants contended that the wordings on the bags were added later, casting doubt on the authenticity of the seizure. The Tribunal agreed with the appellants, emphasizing the lack of concrete evidence proving foreign origin and highlighting discrepancies in the seizure memo. The Tribunal ruled in favor of the appellants, concluding that the Revenue failed to establish the betel-nuts' foreign origin, leading to the allowance of the appeals and the release of the confiscated betel-nuts.

Confiscation of Vehicles:
Along with the betel-nuts, two vehicles used for transportation were also confiscated. The owner of the trucks had the option to redeem them on payment of redemption fines. The confiscation of vehicles was linked to the suspected smuggling of betel-nuts. The Tribunal's decision to release the betel-nuts due to lack of evidence supporting foreign origin also extended to the vehicles, leading to the allowance of the appeals and consequential relief to the appellants regarding the confiscated vehicles.

Imposition of Penalties:
In addition to the confiscation of goods and vehicles, penalties were imposed on various individuals involved in the case. The penalties ranged from Rs. 50,000 to Rs. 1,00,000. The appellants challenged the penalties based on the disputed foreign origin of the betel-nuts. The Tribunal's decision to release the confiscated goods and vehicles due to insufficient evidence of smuggling also invalidated the basis for imposing personal penalties. Consequently, the appeals were allowed, leading to the relief of the appellants from the imposed penalties.