TaxTMI 
TaxTMI 
2019 (12) TMI 398
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....has passed the following order:- "In view of the facts as discussed above and in exercise of power conferred upon me under Section 22 of the Customs Act 1962, I pass the following orders:- (i) I order for absolute confiscation of the seized Zink Ingot weighing 1021.480 Kgs. valued at Rs. 1,94,081/- (Rupees One lakh ninety four thousand eighty one only) under Section 111(b) of the Customs Act, 1962. (ii) I order for confiscation of the seized vehicle valued at Rs. 2,50,000/- (Rupees Two lakh fifty thousand only) under Section 115(2) of the Customs Act 1962. However, I give option to redeem the vehicle on payment of fine of Rs. 50,000/- (Rupees Fifty thousand only) under Section 125 of the Customs Act, 1962 to the noticee No.1. Since, I find that the noticee No.1 has deposited amount of Rs. 50,000/- (Rupees Fifty thousand only) vide T.R. 6 No. 00002 dated 30/12/2016 at the time of provisional release of vehicle, I hold that the deposited amount of Rs. 50,000/- may be appropriated against redemption fine as above. (iii) I impose penalty of Rs. 10,000/- (Rupees Ten thousand only) upon the noticee No.1 under Section 112 of the Customs Act 1962. ....
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....s. 1500/- as freight of the said goods for carrying up to Sitamarhi. At the loading point, he has stated that the said old Jasta (Zinc) has been loaded on his vehicle in the kabar shop of Shri Manoj situated at Bhithamore. He has further stated that the Jasta appears to be of Nepal but he did not know the actual mode of illegal import from Nepal into India. The zinc Ingot was of different shape and size but he did not disclose the destination where to deliver the material and further he has filed application on 7.12.2016 claiming the ownership of the seized vehicle which was later on released on provisional basis. The said vehicle was released on the security money of Rs. 50,000/-. The said goods were sent to Joint Director, Chemical Laboratory, Customs House 15/1 Strand Road, Kolkata and the Chemical Examiner, Kolkata gave the following report:- "The sample is in the form of out/broken shining grayish metallic lumps of irregular shape and size. It is mainly composed of zinc together with iron and small amount of other inorganic matter. Zinc=96.4% by wt.". The show-cause notice was issued under Section 124 of the Customs Act, 1962 to all the petitioners giving ....
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....the driver, the petitioner no.1 (Noticee No.2) and petitioner no.3 Manoj Sah (Noticee No.3). He has taken a stand that the material was to be delivered at Muzaffarpur and freight was netogiated with Noticee No.1 at Rs. 1500/-. The seized goods was to be used for manufacturing of Gas Regulator and belt buckles. He has admitted such activities are carried out at Sursand, Sitamarhi and Muzaffarpur but he did not give the name and details of the manufacturer or conversion units of zinc ingots. The Noticee No.3 (petitioner No.3) has appeared and said that he has no relation with the Noticee No.1 (petitioner no.2) but, he is a neighbor. The seized goods has been converted from old battery and he knows the petitioner no.1 (Noticee No.2) from childhood and accepted that two cases under the customs case have already been registered. Again the statement of driver was recorded, he has restated the same that the goods belonged to Manoj Sah and who loaded the goods on his truck, the Noticee No.2 claiming to be his goods, Manoj Sah has said that it does not belong to him having no connection with any of the aforesaid two persons and, ultimately, after discussion, has arrived to a conclusion t....
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....t the goods were not brought from Nepal but, the same are of Indian territory. At the last, learned counsel for the petitioners submits that they were/are obliged to release the goods in terms of Section 125 of the Customs Act. So, the impugned order is liable to be interfered with by this Court. Per contra, learned counsel for the Custom Department submits that the goods were seized in presence of the driver as well as in presence of the two persons (witnesses), seizure memo was prepared properly, inasmuch as, there is a dispute of ownership of the property seized and the statement does not reflect that the seizure memo bearing signature of the panches was not handed over to the driver at the relevant time as the petitioner nos. 1 & 3 were not present. Further, forming an opinion that the material seized is of third country is based upon the information received, that led to interception of driver who made a statement that the seized Zinc has been smuggled from Nepal territory. It has further been submitted that looking to the facts and circumstances, the Custom Officer has rightly formed an opinion or reason to believe that the goods were of Nepal origin as per Section 123 of ....
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.... (1-C) Where an application is made under sub-section (1B), the Magistrate shall, as soon as may be, allow the application.] (2) Where any goods are seized under sub-section (1) and no notice in respect thereof is given under clause (a) of section 124 within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized: Provided that the aforesaid period of six months may, on sufficient cause being shown, be extended by the 2[Commissioner of Customs] for a period not exceeding six months. (3) The proper officer may seize any documents or things which, in his opinion, will be useful for, or relevant to, any proceeding under this Act. (4) The person from whose custody any documents are seized under sub-section (3) shall be entitled to make copies thereof or take extract therefrom in the presence of a officer of customs." "[110-A. Provisional release of goods, documents and things seized pending adjudication. - Any goods, documents or things seized under section 110, may, pending, the order of the [adjudicating authority], be released to the owner on taking a bond from him ....