2004 (10) TMI 147 - AT - Central Excise

Summary

Issues:
- Seizure and confiscation of silver bars of foreign origin
- Rejection of packing list as evidence
- Challenge to the orders of the Commissioner (Appeals)
- Interpretation of relevant circular and tribunal's decision

Seizure and Confiscation of Silver Bars:
Customs officers recovered three silver bars of foreign origin from a bus, totaling 46.700 kgs, without proper documentation of licit import. The consignor was identified as Shri Murarilal Agarwal, and the consignee as Shri N.D. Sekhar. Despite a Bill of Entry, the original authority ordered absolute confiscation under Sections 111(d) and (e) of the Customs Act, 1962, along with a penalty. The Commissioner (Appeals) rejected a packing list produced later but allowed redemption of the goods upon payment of a fine. Two appeals were filed challenging these confiscations.

Rejection of Packing List:
The appellant produced a packing list to establish the identity of the goods mentioned in the Bill of Entry. However, the appellate authority rejected the packing list for lack of correlation, upholding the confiscation but offering an option for redemption upon payment of a fine. This decision was challenged in Appeal No. C/225/2002 and C/266/2002.

Challenge to Commissioner (Appeals) Orders:
The orders of the Commissioner (Appeals) were challenged in two separate appeals by Shri Murarilal Agarwal. The first appeal contested the confiscation of three silver bars, while the second appeal focused on the confiscation of one silver bar of foreign origin. The appellant relied on a government circular and a Tribunal's Larger Bench decision to argue that the seizure and confiscation were unauthorized.

Interpretation of Circular and Tribunal Decision:
The appellant cited Circular No. 394/233/88-Cus.(AS) and a Tribunal decision to support the argument that the confiscation proceedings were unauthorized. The Circular highlighted conditions under which seizure of silver bullion could be considered, emphasizing the weight and origin of the bullion. The Tribunal found that the confiscations in both cases did not align with the policy outlined in the Circular, as the total weight of silver bars of foreign origin was less than 100 kgs and each bar weighed less than 30 kgs. Consequently, the impugned orders were set aside, and both appeals were allowed.