TaxTMI 
TaxTMI 
1989 (9) TMI 276
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....s presented this appeal with a prayer to set aside the orders of confiscation of the goods and also the imposition of the penalty of Rs. 300.00 on him. 2. Briefly stated the facts of the case are, that on the basis of reliable information the Customs Officers of P. & P.D., W.B., Calcutta searched the shop premises of the appellant named and styled as M/s. Gurunanak Watch Company at Shop No. 21 of Radha Bazar Street, Calcutta on the 18th day of September, 1981. The search was conducted in the presence of the Proprietor, Shri Mahindra Singh and two independent witnesses on the strength of the search order issued by the competent authority which resulted in the recovery of 11 (eleven) wrist watches and 23 (twenty-three) PCS. of watch movement....
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....d the watch movements seized in this case and another bill No. A-1495 dated 16-11-1979 of Adnan Watch Co. in proof of having purchased 10 watches out of the 11 (eleven) watches seized and with respect to one watch which is admittedly of Japan in origin he could not produce any documents, but gave a statement to the effect that the same was given to him by a person for fixing a chain to it, one day prior to the date of seizure. 5. Show Cause Memo was issued to Sri Mahindra Singh, Prop. of M/s. Guru Nanak Watch Co. under Registered A/D, cover on 3-3-1982 calling upon him to explain as to why the goods under seizure should not be confiscated and he should not be penalised under the provisions of Customs Act, 1962 as indicated in the show caus....
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....hese watches are described as Item No. 1 in the seizure list as "Wrist Watches of foreign origin bearing marks Anglo Swiss Watch (TINY) - 17 jewels - Mark "Swiss" - embossed on movements inside the back dials of steel - front dials in assorted colours." In the bill produced as stated above these 10 pcs. of watches are described in Sl.No. 2 of the bill as "Indian W/W Chs/B/RS/BWP 17 JLs Assorted shape and dials MLJ-ST 69/71 with Brand on dial Anglo Swiss Watch (TINY)". But with respect to the document produced by the appellant covering 23 watch movements issued by M/s. Plaza Times the Department did not make any investigation. 7. Thereafter adjudication proceedings were continued and the watches and watch movements were confiscated by the L....
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.... Act, 1962 or under Chapter-IV during the relevant period and hence, in the absence of discharging the burden cast on appellant that these are smuggled goods, the confiscation is bad in law. In so far as the single Richo Watch which admittedly is of Japan origin it was his contention that appellant received the same from one Pradip for repair who was produced before the Adjudicating Authority and there is nothing to show that the same is a smuggled one. 9. It was the contention of Sri P.C. Jain, J.D.R. that on verification from the C.E. Authorities about Anglo Swiss Co. it was reported that they have issued an L-4 Licence dated 21-12-1981 for manufacture of watches with brand name "Anglo Swiss". It was his contention that in this case the ....
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....Switzerland. If they are manufactured from Switzerland the mark 'SWISS' should have been embossed on the dial denoting their manufacture from Switzerland. But in this case these dials are engraved with the mark 'Anglo Swiss Watch Co. - Tiny'. If they were actually imported the word - Swiss - should have been found embossed on the dial which is absent in these ten watches. In the appellate order of the Ld. Collector of appeals passed on 30-5-1985 in Order No. (VI)-552/84 relied on by appellant it is seen that there is an observation that if watches are made from Switzerland the country of origin will definitely be inscribed on the dial which is a general practice. It is also found that it was mentioned in the abovesaid order that Anglo Swiss....
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.... through unauthorised routes is produced and hence on this account, the confiscation and imposition of penalty is liable to be set aside. 12. As far as the 23 pcs. of watch movements are concerned it is clear that during the relevant period these were not notified items. Hence the burden is not on the appellant to prove the negative. The Department has not been able to produce any evidence to show that the goods, in fact, are smuggled into India or that the appellant has purchased them knowing them to be smuggled. In fact, the appellant had produced the bill bearing No. 1722 dated 21-4-80 of M/s. Plaza Times claiming to have purchased these watch movements and no investigation in this behalf was conducted by the Department. It is not in di....