2017 (1) TMI 466 - AT - Customs

Tribunal dismisses Revenue appeal due to lack of evidence & investigation discrepancies.

Commr. of Customs, Patna Versus Shri Pramod Kumar, Shri Manish Hisaria

The Tribunal dismissed the Revenue's appeal against the order of the Commr. of Customs, Patna, dropping proceedings against the respondents. The decision ... Confiscation - penalty - illegal attempt to export of Dal to Nepal - Held that: - the trucks were starting at a place near Muzaffarpur town which is far away from the Indo-Nepal Border. In the present appeal, no contrary evidence was produced. Furthermore, the respondents appeared before the Customs Officers and the statements were recorded. The Adjudicating Authority observed that no further investigation was done. The allegation of an attempt to export to Nepal cannot be made merely on assumption and presumption because so far as the said trucks were stationed at a place near Muzaffarpur - appeal dismissed - decided against Revenue. Issues involved:1. Appeal against the order of Commr. of Customs, Patna dropping proceedings against the respondents.2. Confiscation of goods and imposition of penalty on the respondents.3. Proper appreciation of evidence and findings of the adjudicating authority.4. Allegation of attempted illegal export to Nepal.5. Failure of investigation to establish substantial evidence for confiscation under the Customs Act, 1962.Detailed Analysis:1. The appeal was filed by the Revenue against the order of the Commr. of Customs, Patna, dropping proceedings against the respondents. The intercepted trucks loaded with Dal were meant for M/s S.H. Food Products of Sitamari. The investigation revealed discrepancies in the accompanying documents, leading to a show cause notice proposing confiscation of goods and penalties. However, the Commr. of Customs dropped the proceedings, prompting the Revenue's appeal.2. The adjudicating authority's findings were crucial for proper appreciation of the case. The advocate for the respondents cited a judgment of the Patna High Court in support of their case. The investigation lacked corroborative evidence besides the drivers' statements. No other involved parties confirmed knowledge of the alleged illegal export to Nepal. The documents presented by the respondents did not show any anomaly in the lawful trading of Dal within India. The trucks were found far from the Indo-Nepal border, and the drivers stated the consignee was M/s S.H. Food Products. The investigation failed to establish any attempted illegal export convincingly.3. The Revenue contended that the trucks being stationed at a place towards Sitamarhi raised suspicion, as they should have been en route to their destination. The delayed claim of ownership and lack of response from the consignee added to the doubts. However, the adjudicating authority's findings stood unchallenged in the appeal. The absence of contrary evidence and the respondents' appearance before Customs Officers further supported the original decision.4. The allegation of attempted illegal export to Nepal was a key issue. The Revenue's grounds for appeal were not supported by substantial evidence or rebuttal of the investigation findings. The lack of further investigation and the trucks' location far from the border weakened the case for illegal export. The presumption and assumption of illegal activity were not sufficient to establish wrongdoing, especially given the circumstances surrounding the trucks' interception.5. Ultimately, the Tribunal dismissed the Revenue's appeal, upholding the Commr. of Customs' decision to drop the proceedings. The lack of concrete evidence, failure to establish illegal export, and the unchallenged findings of the adjudicating authority were pivotal in the Tribunal's decision. The order emphasized the importance of substantial evidence and proper investigation to support allegations under the Customs Act, 1962.