9911796707
TMI Blog1989 (5) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... ith 46 video recorded cassettes all of foreign origin valued at Rs. 37150/- in all were recovered. On demand, Shri Rana Singh, brother of late Shri Harjeet Singh produced two baggage receipts Nos. 148260 dated 27-8-1983 in the name of Shri Shashi Bhushan from Delhi Airport and 216041 dated 30-01-1984 issued in the name of Moosa Yusif Hussain from Bombay Airport. In support of lawful acquisition/possession of the said VCRs. He also produced two invoices Nos. 1515 dated 30-7-1984 of M/s. Nam Dhari Electricals, Dewan Hall Road, Chandni Chowk, Delhi and another invoice No. S/51-0333 dated 7-7-1984 of M/s. Video Sonics Company, Defence Colony, New Delhi in support of the purchase of the 46 video cassettes. Shri Rana Singh also produced one sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of Rule 2(c) of Baggage (Conditions of Exemption) Rules, 1975 as amended. It was also alleged that the seized goods were notified goods under Section 11-B of the Customs Act and they were also notified under Section 123 ibid. Accordingly, the burden of proof that the goods were not smuggled was cast upon the notices namely Shri Harjeet Singh. 3. On due adjudication, the learned Additional Collector has absolutely confiscated the VCRs and Video cassettes and has imposed a penalty of Rs. 5000/-. 4. The learned Advocate Shri M.D. Chaudhary, appearing for the appellant has urged that the goods were recovered from the residential premises. Evidence of their purchase/legal acquisition as well as legal importation was given by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gage (Conditions of Exemption) Rules, he submits that the VCRs were imported on payment of duty as is apparent from the baggage receipts and therefore, the aforesaid rules do not apply to the transfer of these goods. On a query from the Bench that the sale of the VCRs has been in contravention of the relevant ITC Public Notice which prohibits sale of VCRs for a stipulated period of 5 years from the date of importation, the learned Advocate states that the provisions of the ITC Public Notice have not been invoked in the show cause notice. In view of the foregoing submissions, he submits that the goods be released unconditionally; even if there is any fault in sale of the goods by the two importers namely Shashi Bhushan and Moosa Yusuf, the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the VCRs to late Shri Harjeet Singh for which he not only procured the baggage receipts but also got the sale deeds. The observation of the learned Adjudicating Authority in discarding the said evidence to the effect that the transaction was effected between unknown persons, is not tenable. It is not necessary that sale or purchase must be through two known persons. In the facts and circumstances of this case, there is no doubt that the two VCRs were imported legally on payment of duty and these have also been purchased by Shri Harjeet Singh on payment of adequate consideration. The two VCRs, no doubt, remain liable to confiscation because they were sold in contravention of the ITC Public Notice/regulations before the stipulated period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the cassettes after they were recorded no longer remain foreign goods and therefore, they are not liable to confiscation. I am inclined to agree with the observation of the learned Adjudicating Authority in this respect. Recording of video cassettes is merely the change of form of the imported goods. If the video cassettes are not otherwise proved to have been legally imported the mere fact that they were recorded subsequently will not take away their smuggled character. They are liable to confiscation under Section 120 of the Customs Act sub-section (1) of which provides that smuggled goods may be confiscated notwithstanding any change in their form. As rightly pointed out by the learned Adjudicating Authority the invoices produced by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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