1984 (4) TMI 170 - AT - Customs

Summary

Issues:
- Show cause notice under Section 131(3) of the Customs Act, 1962
- Allegations of selling goods of foreign origin
- Confiscation of goods and imposition of penalties
- Appeal to the Central Board of Excise & Customs
- Grounds for setting aside the Collector's order
- Correlation between advertisement and seized goods
- Display of goods for sale
- Decision on restoring the Collector's order

Analysis:

The case involved a show cause notice issued under Section 131(3) of the Customs Act, 1962, regarding the sale of goods of foreign origin by the respondents. The Collector of Customs and Central Excise adjudicated the matter, confiscating certain goods found at the respondents' residence and imposing penalties for contravention of exemption rules. The respondents appealed to the Central Board of Excise & Customs, which set aside the Collector's order citing various grounds, including the lack of evidence on goods sold and discrepancies in valuation. The Central Government disagreed with the Board's decision, leading to a show cause notice being issued to the respondents.

The key issue revolved around the correlation between the advertisement of goods and the items seized. The Board highlighted discrepancies in the Collector's order, such as the absence of details on goods sold and valuation inconsistencies. The Board also questioned the evidence linking the seized goods to the advertised items. The Collector's failure to establish which goods were brought by each party and displayed for sale weakened the case against the respondents. The lack of evidence from independent sources on the display of goods further undermined the Department's claims.

Ultimately, the Tribunal upheld the Board's decision, emphasizing the Collector's oversight in crucial aspects of the case. The Tribunal found no substantial proof of the respondents' wrongdoing regarding the advertisement, sale, or display of goods. Due to the lack of concrete evidence and discrepancies in the Collector's order, the appeal of the Department was dismissed, affirming the correctness of the Board's decision.