Hearsay evidence and border-area storage were insufficient to prove attempted export of pulses to Nepal.

Seized pulses stored in a godown near the Indo-Nepal border were not shown to be intended for attempted export to Nepal. The Revenue relied only on oral, unrecorded statements and a later statement recorded after seizure, but that evidence was treated as hearsay and insufficient to prove a concluded attempt to export. No reliable material or customs classification supported an inference that mere border-area storage amounted to an export attempt. The first appellate authority's view that the facts indicated, at most, irregular trading activity rather than attempted export was accepted, and the customs allegation failed.

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Issues: Whether the seized pulses stored in a godown near the Indo-Nepal border were intended for attempted export to Nepal, so as to justify customs proceedings.

Analysis: The only material relied upon by the Revenue consisted of oral unrecorded statements and a later statement recorded after seizure. The evidentiary basis was found to be hearsay and insufficient to establish a concluded attempt to export. The goods were pulses, and no specific customs classification or other reliable material was shown to support an inference that mere storage near the border amounted to an attempt to export. The first appellate authority's view that the facts pointed at best to irregular trading activity, and not to attempted export, was accepted as correct.

Conclusion: The allegation of attempted export was not proved and the Revenue's challenge failed.

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