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Issues:
- Attempted unlawful export of silver bullion - Confiscation under Section 113(d) of the Customs Act - Imposition of penalty under Section 114 of the Customs Act - Jurisdictional issue of the place of seizure - Compliance with transportation regulations within a specified area Analysis: 1. Attempted Unlawful Export of Silver Bullion: The case involved two appellants, Shri Pannalal and Shri Badri Prasad, who were found in possession of silver bullion valued at Rs. 15,540. The Assistant Collector of Customs ordered confiscation of the silver under Section 113(d) of the Customs Act and imposed a penalty of Rs. 2,000. The Collector of Customs (A) upheld the confiscation and penalty in the appeal filed by Shri Badri Prasad, citing proof of attempted unlawful export under Section 113(d). However, the appeal filed by Shri Pannalal raised questions regarding the validity of the seizure and the jurisdictional issues related to the place of interception. 2. Confiscation under Section 113(d) and Imposition of Penalty: The Collector (Appeals) affirmed the decision of the Assistant Collector regarding the confiscation and penalty. The appellants contested the confiscation under Section 113(d), arguing that the silver bullion was not seized by the Central Excise Officers and that the show cause notice did not clearly establish an attempt to export the goods. The appellants also challenged the fineness of the silver content, claiming it was a silver alloy and not bullion. However, the jurisdictional issue of the place of seizure remained a critical point of contention. 3. Jurisdictional Issue of the Place of Seizure: The key argument revolved around whether the place of interception, Bettiah, fell within the specified area of 50 kilometers from the border as required by Customs regulations. The appellants presented evidence suggesting that Bettiah was beyond the 50-kilometer limit, while the Departmental Representative contended that the seizure was within the designated area. The lack of conclusive proof regarding the distance from Bettiah to the border raised doubts about the validity of the confiscation under Section 113(1) of the Customs Act. 4. Compliance with Transportation Regulations within a Specified Area: The Collector (A) noted that the transportation of silver without a voucher within a specified area was established in the case of Shri Pannalal. However, discrepancies arose regarding whether the place of seizure was within the belt area as required by law. The appellants consistently argued that the interception did not occur within the specified jurisdiction, casting doubt on the legality of the confiscation and penalty imposed. 5. Conclusion: The Tribunal, after considering the submissions from both sides, concluded that the Department failed to provide sufficient evidence to prove that the place of seizure fell within the 50-kilometer belt area as mandated by Customs regulations. As a result, the appeals filed by the appellants were allowed, and they were entitled to consequential reliefs. The judgment highlighted the importance of establishing jurisdictional compliance and the burden of proof on the Department in cases of confiscation and penalties under the Customs Act.
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