2007 (8) TMI 795 - AT - Customs

Tribunal overturns Ginger confiscation ruling, citing lack of evidence.

The Tribunal found the confiscation of fresh Ginger brought from Nepal to be unsustainable due to lack of evidence supporting smuggling. The appellants ... - Issues involved: Confiscation of fresh Ginger brought from Nepal, legality of confiscation and penalty u/s 111 of Customs Act 1962, relevance of hearsay evidence, applicability of Section 123 of Customs Act 1962, ownership of goods and truck.Confiscation of fresh Ginger: The Customs Officers intercepted a truck loaded with fresh Ginger brought from Nepal illegally. A show cause notice was issued proposing confiscation of the Ginger and the truck under Section 111 of Customs Act 1962. The adjudicating authority confiscated the goods, imposed redemption fine, and penalties on individuals. The Commissioner (Appeals) reduced the penalties.Legality of confiscation and penalty: The appellants argued that the seized Ginger was non-notified under Section 123 of the Customs Act 1962. They contended that the confiscation was based on hearsay evidence and cited a Tribunal decision to support their claim. They also referred to a Public Notice clarifying that fresh Ginger from Nepal can be freely imported into India. The appellants claimed that the Ginger was of Indian origin with accompanying documents, making the confiscation and penalties unlawful.Relevance of hearsay evidence: The Tribunal noted that the case relied heavily on the driver's hearsay statement about the Ginger being brought from Nepal. Citing a previous case, the Tribunal emphasized that hearsay evidence without corroboration should not be accepted. The appellants' reply indicated that the Ginger was locally cultivated, supported by a representation from Udyog Vyapar Mandal. The seized goods were accompanied by documents of the owner, not falling under Section 123 of the Customs Act. No evidence of smuggling was presented by the revenue. The authorities did not contest that Ginger was commonly cultivated in the area. Consequently, the confiscation of Ginger and the trucks was deemed unsustainable, leading to the setting aside of the impugned orders and allowing the appeals with consequential relief.