9911796707
TMI Blog2000 (10) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... Anil Jain and Anil Bafna (who were present in the premises of the angadia firm), employees of M/s. KGK Enterprises; (iii) seizure of 404.76 carats of cut and polished diamonds from Pramod G. Adani, who was present outside the premises of M/s. Patel Madhavlal Madanlal Co., when that firm was searched, (iv) seizure of 438.32 carats of diamonds from Vikram Vora, when he was in the premises of M/s. KGK Enterprises. This last seizure was made during the follow up search of M/s. KGK Enterprises, as a consequence of the recovery of the money from Anil Jain and Anil Bafna during which the diamonds were recovered from Vikram Vora who was present there. 2. Adjudicating on the notices issued to these persons, and to others, the Collector, in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... summons issued to them and finds imperfection in the chain in the transaction. We agree that the failure of these persons who are stated to be the initial owners to come forward is suspicious. Valecha could not initially explain the currency. This however by itself is insufficient to conclude that the money represented the sale proceeds of any smuggled goods. By a long line of decisions, this Tribunal has held that for confiscation of currency under Section 121 of the Act to be sustained, it must be shown that the ingredients of that Section, that the currency must represent the proceeds of smuggled goods as a result of sale by a person knowing or having reason to believe that the goods are smuggled, are satisfied. [Om Prakash v. CC, 1993 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of diamonds seized from him, diamonds weighing 130.94 carats was given to him by Ashok Jain and the remainder was given to him by Vinodbhai. He claimed to be a broker in diamonds. Ashok Jain, in turn, says that he had purchased these diamonds from two firms and had given to Adani for valuation. We share the Collector s view that diamonds are normally valued before purchase and not after purchase. His explanation that the diamonds were now required to be sold and hence were to revalue to proceed on the assumption that value of diamonds fluctuates valiantly and frequently which has some sense totally unjustifiable. The Collector also points out that there is a difference in the quantity between Adani said was given to him by Jain and the tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hold true with regard to 438.32 carats of diamonds seized from Vinod Vora. Vora said that these diamonds were received by him from three persons, whose addresses or other identifying particulars he did not give. The Collector s conclusion that because Vora did not produce evidence of legal acquisition, it must be concluded that the diamonds were smuggled, in effect transfers the burden of proving that it was not smuggled upon to Vora. We therefore set aside the confiscation of these diamonds, and consequently the penalties imposed on Vinod Vora, Pramod Adani and Bharat Vora are set aside. 6. There now remains the currency of Rs. 5.42 lacs seized from the premises of the angadia firm. The Collector has ordered confiscation of this curren ..... X X X X Extracts X X X X X X X X Extracts X X X X
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