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Issues:
1. Seizure of foreign-made car engines and cars fitted with such engines from a motor garage. 2. Confiscation of the engines and imposition of penalty by the Additional Commissioner. 3. Appeal against the confiscation order based on Customs Act provisions. 4. Import of used diesel engines and their classification as restricted goods. 5. Evidence required to establish smuggled nature of goods. 6. Market availability and clearance of old engines on payment of duty and fine. Analysis: 1. The case involved the seizure of seven foreign-made car engines and six cars fitted with such engines from a motor garage. The respondent identified the owners of the cars and produced bills showing the purchase of the engines. The Additional Commissioner adjudicated the case, resulting in the confiscation of the engines and imposition of a penalty. 2. The Commissioner (Appeals) observed that the goods were not listed under Section 123 of the Customs Act, 1962, nor were they prohibited under Section 11. He set aside the orders of confiscation, stating that the engines were openly available in the market and presumed to be duty paid. This decision led to the filing of the present appeal. 3. During the appeal, case law was cited to establish precedents related to illegal importation and the failure to produce necessary evidence of purchase. However, the Tribunal found these citations irrelevant to the present case as they did not align with the circumstances at hand. 4. The judgment highlighted that while the import of used diesel engines is prohibited, hundreds of such engines are imported annually in India. These engines are considered restricted goods under Section 125 of the Act and can be cleared on payment of redemption fines. The Tribunal emphasized that once these goods are legally procured, no stigma is attached to them, and they can be openly bought and sold. 5. It was noted that in cases where imported goods are not notified or do not fall under specific Act sections, the Department must provide sufficient evidence to establish the smuggled nature of the goods. The Tribunal referenced previous judgments emphasizing the need for substantial evidence to prove illegal importation, especially when allegations of fictitious firms are made without concrete proof. 6. Considering the prevalence of old engines in the market cleared on duty and fine payments, the Tribunal affirmed the Commissioner's decision that the goods in question were deemed duty paid. Consequently, the appeal from the Revenue was dismissed, and the stay application was also discharged.
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