Supreme Court India Reverses Confiscation Decision Due to Lack of Proof

The Supreme Court of India reversed the Appellate Tribunal's decision and upheld the confiscation of rough diamonds and penalty due to lack of proof of overvaluation. The Court found discrepancies in expert reports and no evidence of a relationship between the appellant and the foreign supplier, casting doubt on the declared value. It ruled that re-export without a Kimberley Process Certificate did not justify absolute confiscation, allowing re-export without a redemption fine.

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The Supreme Court of India in 2010 (4) TMI 1015 - SC Order, overturned the Appellate Tribunal's decision to set aside confiscation of rough diamonds and penalty due to lack of proof of overvaluation. The Tribunal noted discrepancies in expert panel reports and found no evidence of relationship between the appellant and foreign supplier casting doubt on the declared value. It ruled that re-export of goods without Kimberley Process Certificate did not warrant absolute confiscation, allowing re-export without redemption fine.

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