1966 (12) TMI 10 - AT - Customs

Customs dispute: Seized goods' origin questioned, leading to confiscation upheld by Tribunal. High Court reviews due process.

The appellant's goods, initially claimed to be of foreign origin, were seized by Customs authorities. Despite a retraction and assertion of Indian origin, ... Reference to High Court Issues:1. Seizure and confiscation of goods by Customs authorities.2. Retraction of statement by the appellant.3. Admissibility of documents for legal purchase and possession of goods.4. Appeal before the Tribunal challenging lower adjudicating authority's decision.5. Request for reference to the High Court based on a question of law.Analysis:1. The Customs authorities seized foreign origin goods from the appellant's premises, including VCRs, VCPs, and a calculator. The appellant initially claimed the goods were purchased from an unknown broker without documentation. Subsequently, the appellant retracted this statement, asserting the goods were of Indian origin and requested verification with corresponding receipts. The Additional Collector of Customs confiscated the goods under Section 111 of the Customs Act and imposed a penalty.2. The Collector (Appeals) considered the appellant's retraction of the initial statement, ruling out the claim of duress and the admissibility of the documents provided by the appellant. The Collector found discrepancies in the documents, such as bills dating back to 1987-1989, and concluded they did not correspond to the seized foreign origin goods.3. The appellant appealed to the Tribunal, arguing that the lower adjudicating authority erred in its assessment. The Tribunal upheld the decision, stating the appellant's retracted statement was an afterthought, and the documents presented were not genuine, pertaining to Indian origin goods rather than the seized foreign origin items.4. The appellant then sought a reference to the High Court, alleging that the seized goods were disposed of before the issuance of a show cause notice, despite requests for verification of the goods' origin. The question of law presented for reference was whether the Tribunal was justified in confirming the confiscation when the goods were disposed of prior to proper examination.5. The High Court of Allahabad framed the question of law and requested a statement of the case. The appellant's affidavit requesting inspection of the seized goods was highlighted, emphasizing the alleged disposal of goods before the matter was resolved, leading to the reference question regarding the justification of the confiscation in light of the disposal of goods before due process.