1995 (2) TMI 180 - AT - Customs

Summary

Issues Involved:
1. Confiscation of cinnamon.
2. Imposition of penalty on the appellant.
3. Release of cardamom and raisin by the Collector (Appeals).

Detailed Analysis:

1. Confiscation of Cinnamon:
The Customs Officers received information about the smuggling of cinnamon and other contraband goods from Chittagong, Bangladesh. Upon intercepting a vehicle, they found 29 bags of cinnamon, 20 kgs of cardamom, and 17.5 kgs of raisin of foreign origin. The goods and the vehicle were seized, and after investigation, the Additional Collector confiscated the goods and imposed a penalty on the appellant. The appellant contended that there was no proof of the cinnamon's foreign origin and that the goods were not notified, thus the burden of proof was on the department. The tribunal considered the circumstances, including the foreign markings on the cinnamon bags and the appellant's inconsistent story about the goods' origin. The tribunal cited Supreme Court judgments, emphasizing that the appearance and packing of the goods indicated recent importation. The appellant's failure to provide documentation for the purchase of the cinnamon supported the conclusion that the goods were smuggled. The tribunal confirmed the confiscation but allowed the appellant to redeem the cinnamon on payment of a redemption fine of Rs. 1 lakh.

2. Imposition of Penalty on the Appellant:
The appellant argued that the penalty was unjustified due to the absence of mens rea and the non-mention of specific sub-clauses of Section 112 in the show cause notice. The tribunal referenced previous judgments, stating that the burden of proof was on the department to show that the goods were smuggled. The tribunal found that the circumstances and the appellant's false story were sufficient to discharge this burden. The tribunal also addressed the issue of non-mention of specific sub-clauses, citing a Supreme Court decision that the source of power could be validly traced to Section 112(b) of the Customs Act. Therefore, the imposition of the penalty was upheld.

3. Release of Cardamom and Raisin by the Collector (Appeals):
The department filed a cross-objection against the release of cardamom and raisin. The tribunal noted that these items were in small quantities and not packed in bags with foreign markings. The tribunal saw no reason to interfere with the Collector (Appeals)' decision to release these goods. Consequently, the cross-objection was dismissed.

Conclusion:
The tribunal confirmed the confiscation of the cinnamon and the imposition of the penalty on the appellant. However, it allowed the appellant to redeem the cinnamon on payment of a redemption fine. The release of cardamom and raisin by the Collector (Appeals) was upheld, and the department's cross-objection was dismissed.