Possessor of smuggled bike liable to pay customs duty despite cheaper purchase price.

The possessor of a smuggled bike is liable to pay customs duty, regardless of the lower purchase price. DRI officers have the authority to issue a show cause notice under Section 28 of the Customs Act, 1962. The appellant bought the bike for Rs. 5,70,000 with fake documents, despite its market value exceeding Rs. 13 lakhs, disqualifying him as a bona fide purchaser. Under Section 125(1), when the owner is unknown, the possessor must pay the duty. With the bike's owner unidentified, the appellant is responsible for the duty. The appeal was dismissed by CESTAT. .....

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