1999 (7) TMI 311

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..... ppeal of the appellant alone is to be heard in terms of the impugned order. The appellant was carrying on the business of silver refining. During the course of his trade, he received from his customers silver for the purpose of refining. There is no legislation for the purpose of regulating the activity of silver refining except that they have to take licence under the Act. The appellant had received silver bars from the other accused Sri K.R. Ramesh for the purpose of melting. 100Kgs. of silver in three silver ingots were received by him along with baggage receipt. The appellant satisfied himself on the basis of baggage receipt produced to him about the licit import. He took all necessary care for verifying authenticity before verifying th .....

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..... k of refining. Therefore, in terms of the Customs Act also burden of smuggling has not been proved and the Department did not discharge its burden. He submits that the plea of innocence ought to have been accepted by the Commissioner. It is his further contention that mere possession of silver cannot lead to the conclusion of the appellant s connivance in the act of smuggling of silver for the purpose of imposition of penalty under the Customs Act. In this regard, he relied on the judgment of Pradeep Kumar Jain as reported in 1998 (104) E.L.T. 111. In the said judgment, the Tribunal noted that the appellant had purchased the goods from the open market which had foreign marking and the fact that such goods were sold in the open market led to .....

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..... s an act of punishable under Customs Act and on this ground the appellant is implicated, who had bonafide belief; then it will become difficult for any goldsmith or refiner to carry out the activity of refining or gold making. There is no specific Iegislation for such persons to maintain any registers. The have to only exercise due caution and care that the gold/silver placed in their hand is not a smuggled one. The appellant has exercised due care inasmuch as calling upon Sri Ramesh to show the licit import, who had placed the baggage receipt. Sri Ramesh also has given the statement of having given to the appellant the baggage receipt. In these facts and circumstances of the case, the appellants plea of innocence and not being involved in .....

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