1993 (11) TMI 75

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..... averred that the applicant had come to Calcutta about 20 days prior to the search by the Customs Officers on 6-4-1973, for settlement of marriage of his daughter and sister's son; that Item Nos. 1 to 6 of the inventory of the Panchnama consisting of cut diamonds (weighing 7.81 carats) were brought from Ladnum, Jodhpur, where he was a partner of M/s. Hem Raj Jain, Jewellers; that these cut diamonds .....

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..... ich were claimed by Shri Kamal Singh Bafna etc. 3. The learned Advocate emphasised that no expert had opined or mentioned the place where the diamonds were cut/polished and since these are of inferior quality and main value addition is on account of their being cut and polished only which is cheapest in India, the presumption is that these are of Indian origin; such inferior diamonds were not wor .....

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..... gled' assumes that goods are of foreign origin and are imported from abroad. The foreign origin of goods is a sine qua non for applying the onus on a person under the said Section 123. As held by the Hon'ble Supreme Court in Shantilal Mehta v. Union of India [1983 (14) E.L.T. 1715 (S.C.)] "the word 'smuggled' means that the goods were of foreign origin and that they had been imported from abroad" .....

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..... number of pieces is non-existent because the invoices produced were for greater number/weight than the seized goods. If, therefore, lesser number and weight of diamonds were seized that invoice does not on that score alone become discrepant. Only in respect of valuation one could say that the valuation done by the officers (Rs. 40,590/-) was higher than the invoice value (Rs. 18/338/-). But that .....

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..... inferior quality/value and, therefore, not the types that would normally be smuggled in. Since the case of the department is not established at threshold of Section 123 ibid the presumption that the goods were smuggled is not available. 8. Therefore, notwithstanding the fact that there was some information with the Department, Government is inclined to grant benefit of doubt in this case without .....

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