1994 (8) TMI 117 - AT - Customs

Summary

Issues:
1. Appeal against the order of the Collector (Appeals) regarding release of Indian currency and penalty imposition.
2. Confiscation of smuggled silver and Indian currency, penalties imposed.
3. Claim of respondents regarding borrowed money and release of Indian currency.
4. Discrepancies in statements and affidavits, credibility of claims.
5. Allegation of abetment in smuggling against the respondents.

Analysis:
1. The case involved an appeal against the order of the Collector (Appeals) concerning the release of Indian currency and imposition of penalties. The Revenue appealed the decision that directed the release of Rs. 2,28,600 recovered from National Hotel, Amritsar, and set aside the penalty imposed on the respondents by the adjudicating authority.

2. The Customs staff intercepted three individuals near a train in Amritsar, leading to the seizure of smuggled silver. Subsequently, Indian currency was recovered from rooms occupied by the individuals in the hotel. The Addl. Collector confiscated the silver, currency, and imposed penalties, which was challenged in the appeal.

3. The Collector (Appeals) found insufficient evidence linking the Indian currency to the sale proceeds of smuggled silver, directing its release based on claims of borrowing from individuals who provided affidavits. The respondents denied ownership initially, leading to the appeal by the Revenue.

4. The credibility of the respondents' claims was questioned due to discrepancies in statements and affidavits. The Revenue argued that the belated claim and lack of proper documentation raised doubts about the source of the currency, contending that the affidavits seemed influenced and lacked corresponding entries in account books.

5. The issue of abetment in smuggling was raised, with the Revenue alleging that the respondents were involved in the smuggling operation. However, the Tribunal found that the burden of proof was not met to establish the respondents' connection to the smuggling of silver, ultimately setting aside the penalty imposed on them.

In conclusion, the Tribunal upheld the decision to deny the release of the seized Indian currency to the respondents and set aside the penalty imposed on them, as the burden of proof regarding their involvement in the smuggling operation was not sufficiently established.