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Issues:
1. Confiscation of seized silver coins under Customs Act. 2. Classification of seized silver coins as coins or bullion. 3. Interpretation of relevant legal definitions and notifications. 4. Comparison with a relevant legal precedent. 5. Decision on the appeal against the Order-in-Appeal. Confiscation of Seized Silver Coins: The case involved the confiscation of 230 silver coins weighing 3.043 Kgs. valued at Rs. 8521.80 recovered from an individual at a railway station. The Customs staff seized the coins under section 110 of the Customs Act suspecting an attempt to export them in violation of relevant notifications. The appellant and another individual were called to show cause, leading to the absolute confiscation of the coins by the Adjudicating Authority, who also imposed penalties. The appellate authority allowed the appellant to redeem the coins on payment of a fine, leading to the current appeal. Classification of Seized Silver Coins: The appellant's counsel argued that the seized silver coins were not coins but bullion, as they were not stamped or issued by any authority for use as money. The definition of a coin under the Gold (Control) Act was cited to support this argument. The judgment agreed with this interpretation, stating that the recovered silver pieces did not meet the legal definition of a coin as they were not issued by a sovereign power for use as money. The recovered pieces were sold and purchased as silver bullion in the market, not as coins. Interpretation of Legal Definitions and Notifications: The judgment referred to relevant notifications under the Customs Act regarding the transportation of silver bullion and coins. The recovered silver pieces, despite having religious emblems, were considered bullion as per the definitions provided in legal references. The appellant's argument that the pieces were refined and had religious significance was dismissed, as the essential characteristic of bullion was not lost even after refinement. The interpretation of the notifications aimed to prevent misuse by smugglers by converting bullion into coin-like shapes. Comparison with a Relevant Legal Precedent: The appellant cited a case regarding the taxation of gold ornaments, but the judgment found it inapplicable to the current case. The distinction was made that in the cited case, the gold ornaments were intended for melting and reuse, unlike the silver pieces in the present case, which were not purchased for such purposes. Decision on the Appeal: The judgment upheld the Order-in-Appeal, rejecting the appellant's argument that the seized silver pieces were coins. It agreed with the Adjudicating Authority's classification of the pieces as silver bullion, emphasizing that the pieces did not meet the legal definition of a coin. The appeal was deemed devoid of substance, and the decision favored the confiscation of the silver pieces as bullion under the Customs Act.
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