Benefit of doubt in alleged clandestine import prevents confiscation and penalty where transit to Nepal was not disproved.

Goods said to have been clandestinely imported and concealed in a vehicle were not proved to be so on the record. The Tribunal found material inconsistencies in the department's version on interception, cavities in the vehicle, and the nature of declaration, while the adjudicating authority had already accepted the appellant's bona fides and released most seized articles. On the evidence as a whole, the vehicle and goods were treated as intended for transit to Nepal, and the alleged illicit importation or concealment for home consumption was not established beyond doubt. Confiscation of the caravan and ball point tips, and the penalty, were therefore not sustainable.

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Issues: Whether the caravan, the ball point tips and the penalty were liable to confiscation and imposition of penalty on the footing that the goods were clandestinely imported into India, concealed in the vehicle, and not duly declared.

Analysis: The record showed inconsistent departmental versions about the manner of interception, the existence of cavities, and the nature of declaration made by the appellant. The adjudicating authority itself had accepted that no cavity was established, had released most of the seized articles, had found the currency not liable to confiscation, and had accepted the bona fides of the appellant in relation to the vehicle and the accompanying articles. The Tribunal held that the evidence, taken as a whole, indicated that the vehicle and goods were intended for transit to Nepal and that the alleged violations were not established beyond doubt. In those circumstances, the statement relied on by the department was treated as lacking decisive evidentiary value and the appellant was entitled to the benefit of doubt.

Conclusion: The caravan and the ball point tips were not liable to confiscation, and the penalty was unsustainable; the assessee succeeded.

Ratio Decidendi: Where the materials as a whole indicate bona fide transit of goods through India and the departmental case is weakened by material inconsistencies and lack of proof of illicit importation or concealment for home consumption, confiscation and penalty cannot be sustained.

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