1994 (6) TMI 111

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....ondent Collector submitted that it is highly doubtful whether the appeal is in time. The same is barred by limitation. He also stated that the appellant is only the Manager and he cannot claim the goods in question. He also pointed out that the appellant has no case on merits. 3.  This case arose out of a seizure made by the Customs Officers of about 1397 pieces of Ball Bearings of foreign origin. They were seized from M/s. Internal Road Services, C-7, Strand Warehouse, Calcutta-I. The  ball  bearings were booked by M/s. Shyam Trading Co. The goods were valued at     Rs. 71,265.00. The same were seized on a reasonable belief that they were smuggled into the country. The appellant in his letter dated 15-....

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....llows : ".....If he failed to disclose the identity of the person who gave him the gold, then it was open to the court to presume under Sections 106 and 114 of the Evidence Act that the appellant knew that the gold in his possession was smuggled and imported without permit." Relying on the above observation of the Supreme Court and if the above principal is applied to the facts of this case, it is seen that the appellant has failed to disclose the names of the persons from whom he has acquired the foreign ball bearings. The appellant is dealing in ball bearings in the normal course of business. He is expected to purchase the same under proper bills. In this case, not only he has not produced any bills but he has failed to identify the....

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....he appellant also could not point out the persons from whom they have purchased these ball bearings. In such circumstances, the initial burden of the Department is discharged. After the initial burden of the Department is discharged it is for the appellant to prove or name the persons from whom they have purchased it. Instead of proving the same, the Appellant is stating that they have purchased it in Calcutta from the open market through dalals without naming those persons. In such circumstances, an adverse inference has to be drawn and the circumstance of the case goes to show that the Department has discharged its initial burden to prove that these are smuggled goods. 6.  In another decision reported in 1983 (13) E.L.T. 1546 (SC)....