1986 (8) TMI 245 - AT - Customs

Summary

Issues:
1. Delay in appeal presentation.
2. Confiscation of goods under Customs Act, 1962.
3. Origin of goods - Indian or foreign.
4. Application of Section 123 of the Act.
5. Interpretation of mahazar contents.
6. Seizure based on reasonable belief.
7. Jurisdiction of seizing authority.
8. Presumption under Section 123.
9. Collector's finding on foreign markings.
10. Legality of confiscation.

Delay in appeal presentation:
The judgment starts by condoning a one-day delay in the presentation of the appeal.

Confiscation of goods under Customs Act, 1962:
The appeal challenges the order of confiscation of goods valued at Rs. 10,870 under Sections 111(d) and 111(p) of the Customs Act, 1962.

Origin of goods - Indian or foreign:
The appellant argues that the goods are of Indian origin, with no evidence proving foreign origin. The mahazar contents and appellant's statements indicate Indian origin, questioning the basis of seizure.

Application of Section 123 of the Act:
The appellant contests the application of Section 123, stating it requires the Department to prove foreign origin first, which was not done in this case.

Interpretation of mahazar contents:
The judge questions the mahazar contents, highlighting discrepancies between the appellant's statements of Indian origin and the authorities' belief of foreign origin for seizure.

Seizure based on reasonable belief:
The judge emphasizes that seizure should be based on a reasonable belief, which was lacking in this case due to the absence of evidence supporting foreign origin.

Jurisdiction of seizing authority:
The judge criticizes the seizing authority for seizing goods without proper jurisdiction, especially when the goods did not bear foreign markings or names.

Presumption under Section 123:
The judge clarifies that Section 123's presumption can only apply after the Department proves foreign origin, which was not the case here as the appellant consistently claimed Indian origin.

Collector's finding on foreign markings:
The judge corrects the Collector's finding, noting that only one item bore a foreign country's name, making only that item liable for confiscation, not the entire inventory.

Legality of confiscation:
Ultimately, the judge sets aside the impugned order, allowing the appeal due to the lack of legal sustainability in confiscating goods without proper evidence of foreign origin, except for the single item with foreign markings.