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TMI Blog2017 (9) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... 3, a search and seizure operation was conducted at the business premises of the appellant, from where the cash currency was recovered and seized. 3. It is the allegation of the Department that another Company known as M/s Kalpena Industries Ltd. had imported plastic granules without paying proper duty, but sold the same in the open market at a higher price with the help of the assessee-company and it is the sale consideration of plastic granules. About the cash seized, the Department has also reported the matter to the Enforcement Directorate (E.D.) also to the Income Tax Department. By the impugned order, the Indian Currency has been seized. Later, the same was deposited in the Bank by the Department. Being aggrieved, the appellant has fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the cash. No other incriminating document was found during the search of operation. Lastly, she made a request to set aside the impugned order and to release the amount along with interest. 8. On the other hand, Shri S.K.Naskar, ld.D.R. for the Department, assisted by Shri Ranjan Sen, Sr.Intelligence Officer, supported the impugned order. They submit that during search operation, Indian genuine currency was seized. No imported currency or valuable material was recovered during the search of operation. Shri S.K.Naskar, ld.D.R. for the Department, admits that the matter is also under consideration before the Enforcement of Directorate as well as Income Tax Department. It is the submission of the ld.D.R. for the Department that both the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale proceeds of smuggled goods, the following conditions are to be satisfied : "Para 6 : (i) there must be a sale. (ii) the sale must be of smuggled goods. (iii) the sale must be by a person having knowledge or reason to believe that the goods were of smuggled origin. (iv) the seller and purchaser and quantity of gold must be established by the Customs authorities. In the case of appellant, none of the above requisites stand fulfilled. No sale has been established, the identity of the buyer and the seller have not been established, and thus as a consequence the currency cannot be considered to represent the sale proceeds of smuggled goods. The statutory requirement to establish a causal link/nexus between the alleged smuggled good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ventive), Kolkata (W.P.No.1114 of 2014) reported in 2017 (345) ELT 91 (Cal.), observed that in respect of seizure under Section 110 of the Customs Act, 1962, it would be better for the respondent authorities to take security from the writ petitioner in accordance with the regulation read with Circular, as a bond which has also to be furnished in accordance with the regulation. In this regard, also refer Malar Vs. Collector of Customs & Central Excise, Tiruchy : 1988 (14) ECR 94 (T), wherein the Court has opined that : Para 6. The mere possession of currency and an unsatisfactory explanation with reference to acquisition of the same may possibly engender suspicion in the mind of an authority. But suspicion however grave it might be, cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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