1990 (3) TMI 156 - AT - Customs

Summary

Issues:
1. Validity of seizure and confiscation of watches.
2. Allegations of improper sealing and substitution of watches.
3. Examination of watch movements and their origin.
4. Application of Section 123 and Chapter 4(A) of the law.
5. Charges under Sections 111(d), 111(p), 119, and Chapter 4.
6. Benefit of doubt to the appellant.

Analysis:
The case involves an appeal against the order of the Addl. Collector of Customs regarding the seizure and confiscation of watches. Initially, 19600 watches were seized, out of which 18540 were released before a show cause notice was issued for 793 watches. The appellant contested the seizure process, claiming improper sealing and lack of evidence linking the confiscated watches to them. They argued that since the department failed to account for all seized watches, there were discrepancies raising doubts about the validity of the seizure.

The appellant further contended that the confiscated watches were not of foreign origin and were likely assembled in India, refuting the department's claim of illegal import. The HMT experts' testimony regarding the watch movements being foreign was deemed insufficient to prove illegal importation. The tribunal noted the lack of concrete evidence supporting the charges under Sections 111(d) and 119, leading to a failure to establish confiscation grounds based on preponderance of probability.

Regarding the application of Section 123 and Chapter 4(A), the tribunal found that these provisions did not apply due to the lack of evidence proving the confiscated watches were illicitly imported. The tribunal also highlighted inconsistencies in the Addl. Collector's order, noting discrepancies between the findings and the operative portion of the decision. The tribunal ultimately set aside the order and accepted the appeal, emphasizing the appellant's entitlement to the benefit of doubt given the uncertainties and lack of conclusive evidence in the case.