Burden of proof for non-notified goods requires Revenue to prove smuggled importation before confiscation or penalty can stand.

For non-notified goods under Section 123 of the Customs Act, the burden remained on the Revenue to independently prove foreign origin and smuggled importation before confiscation could be sustained. The record was found insufficient to corroborate smuggling, and the seizure mahazar and other materials did not establish liability under Section 111(d). As confiscation was unsustainable, the consequential directions for duty assessment, redemption fine, and penalty also failed. The order was set aside and the appellant obtained full relief.

---

---

Issues: Whether confiscation of the seized raw silk yarn, redemption fine, duty assessment, and penalty could be sustained when the goods were not notified under Section 123 of the Customs Act, 1962 and the Department had not satisfactorily proved smuggled importation.

Analysis: The lower authorities proceeded on factual inaccuracies regarding the transport and challan documents and ignored material circumstances showing transport of the goods. Since raw silk yarn was not notified under Chapter IV-A or Section 123, the burden remained on the Revenue to establish foreign origin and illegal importation. The available material, including the seizure mahazar, was held insufficient to independently corroborate smuggling. In the absence of proof that the goods were smuggled and liable to confiscation under Section 111(d), the consequential directions for duty assessment, redemption fine, and penalty could not stand.

Conclusion: Confiscation of the goods was not sustainable and the redemption fine, duty-related direction, and penalty were liable to be set aside.

Final Conclusion: The impugned order was set aside and the appellant obtained full relief.

Ratio Decidendi: For non-notified goods under Section 123 of the Customs Act, 1962, the Revenue must independently prove smuggled importation and foreign origin before confiscation or consequential penalty can be sustained.

---