Appeal dismissed; merger validity not reopened, leasehold rights transferred to corporate debtor formed liquidation estate; section 36(4)(a)(iv) inapp...
CESTAT dismissed the appeal by the Revenue and upheld the impugned order, quashing confiscation and penalty relating to recovery of 80 bags of posta dana. The Tribunal held that the Department failed to discharge the burden of proof that the consignment was of foreign origin or smuggled: seizure relied solely on invoice verification and opinions of three local traders without specifying any third country, and no expert report or analysis from a notified laboratory was procured. As posta dana is not a commodity specified under s.123 of the Customs Act, the onus to establish illicit import lay squarely on the authorities. Documentary gaps, if any, should be addressed under domestic law, not by invoking the Customs Act.
CESTAT dismissed the appeal by the Revenue and upheld the impugned order, quashing confiscation and penalty relating to recovery of 80 bags of posta dana. The Tribunal held that the Department failed to discharge the burden of proof that the consignment was of foreign origin or smuggled: seizure relied solely on invoice verification and opinions of three local traders without specifying any third country, and no expert report or analysis from a notified laboratory was procured. As posta dana is not a commodity specified under s.123 of the Customs Act, the onus to establish illicit import lay squarely on the authorities. Documentary gaps, if any, should be addressed under domestic law, not by invoking the Customs Act.
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