2003 (11) TMI 393

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..... ch 702 pieces were in chorsas form and 2 were in round shape, along with 2 dies used for embossing the chorsas. They also recovered one chit on which weight was noted. Out of the 702 silver chorsas, 534 bore marking electro refined silver - 999 on one side. The total weight of the chorsas was found to be 357.146 kgs. with purity of 999 valued at Rs. 22,85,734/-. During the course of panchanama, Shri Ajaybhai Parekh explained that the silver chorsas were prepared out of 10 foreign marked silver bars by melting the same; however, he could not produce any document for licit purchase/sale/import of the silver bars and therefore, the chorsas were seized under the reasonable belief that they had been converted from foreign marked smuggled silve .....

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..... the chits as belonging to different firms; 2 of which belonged to Mahendra H. Patel and 2 to Shri Natwarlal P. Patel. The statement of Shri Hemubhai Thakore was also recorded in which he corroborated the statement of Rajendra J. Parekh and Manubhai D. Masani and Shri Prajapati also corroborated the statement of Shri Ajay Parekh. Shri Rajendra Parekh s premises were searched. Both Mahendra Patel and Natwarlal Patel had denied that they had placed any orders for chorsas and also denied that they had made any phone calls to the refinery. Rejendra Parekh s statement was also recorded on 12-1-91 wherein he deposed that he had gone to Delhi on 23-12-90 in his car to purchase silver and bring back the same to Ahmedabad; that he purchased 5 silver .....

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..... oes not disclose knowledge or reasonable belief on the part of the appellants that the chorsas were converted from smuggled silver. None of the statement of the appellants brings out such knowledge. Even if it is held that the silver chorsas were to be delivered to Shri Mahendrabhai H. Patel, Shri Natwarbhai P. Patel or the remaining 3 persons who are alleged to be the persons to whom the chorsas were to be delivered, the knowledge that the Chorsas were made by melting smuggled silver cannot be attributed to them, so as to invoke the provisions of Section 112 against them. As far as the workers of the Refinery are concerned, none of them have stated that they knew that the silver bars received in the Refinery on 25-12-90 were smuggled. The .....

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