TaxTMI 
TaxTMI 
2023 (5) TMI 903
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.... Commissioner (Appeals) vide Order No.100-101/Pat/Cus/Appeal/2018, dated 21st August, 2018. The present case involves seizure of 5,700 kg. cut betel nut alleged to be of third country origin. Based on specific information concerning illegal import of cut betel nuts from Nepal into India, S.H.O. of Mufassil Police Station, Siwan, intercepted a truck coming from Gopalgunge side. The examination revealed it to be laden with cut betel nuts. The driver along with three other occupants present at the time of interdiction, however could not produce any documentation in relation to the cut betel nuts being transported. The driver however informed that the goods belong to one Shri Munna Mishra of Motihari and he was carrying the cut betel nut from N....
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....ith the contention of the notice/appellants and found the story put forth by them to be unacceptable. He accordingly declared them involved in the act of smuggling of betel nuts and ordered confiscation of the seized goods i.e. 5700 kg of Betel Nuts of third country origin, valued at Rs.8,55,000/- under Section 111(b) of the Customs Act, 1962. However, he offered the option of redeeming the goods to the notice/appellant no.01, on payment of Rs.4,00,000/- as Redemption Fine under Section 125 of the Act, and since an amount of Rs. 4,56,000/- had already been paid as security deposit at the time of provisional release, he accordingly ordered for appropriation of the RF against it. Further, the Ld. Adjudicator also found the seized Pick-up Van ....
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....ase, the goods claimed to have been purchased by the appellant no.02, were auctioned nearly a year ago. The goods were lifted on 29.04.2015 and are claimed to have been sold to the appellant no.01 on 13.03.2016. While the goods auctioned out of Customs Div, Forbesganj consisted of 2420 kg of betel nuts, 60 kg of dry betel nuts and 3303.40 kg of cut betel nuts, the ones seized were entirely cut betel nuts. This in itself proves that the Invoice no.133 dt. 13.03.2016, issued by the appellant no.02 in favour of the appellant no.01, is nothing but a manufactured document to give cover to the illegally imported cut betel nuts. (iii). I also find that the goods that were auctioned by Customs Div, Forbesganj, belonged to various cases per....
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.... but beyond the point of seizure by police and the goods being handed over to the Customs department and the supply of documents of purchase of goods through M/s Shree Shai Systems, in turn from Customs auction at Forsebganj accounting for the entire 5700 kgs by way of cut & uncut betel nuts the appellants have discharged there initial onus. Goods seized being non-notified, the burden to prove their smuggled nature is entirely on the Revenue. Merely stating that the Arecanut R&D Foundation, Mangalore, informed the goods to be of Burmese origin does not help in conclusively establishing that the goods seized were smuggled. There is no shred of evidence to establish or even state that the goods were smuggled. Having lent a credence to the goo....
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....perishable nature, or that the appellants have not given any valid reason to hold on to the goods for this long, and such like questions do not come to the help of the department for discharge of their onus. On the contrary the fact of mould infection is indicative of goods being old and their improper storage etc., thereby lending support to the plea of the appellants. No evidence has been led by the department to establish that the seized/confiscated cut betel nut were actually smuggled and of foreign origin. Finding laches in the version of the appellant cannot bail out the department in discharge of the specific onus cast upon them to prove their smuggled character. 6. It is observed from the investigations undertaken, that the depar....
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.... a fact that the show cause notice states that testing of the samples of the product to be by Arecanut Research and Development Foundation, Mangalore revealed the product of Burmese origin and heavily infected with moulds. However, the Hon'ble Patna High Court in the case of Salasar Transport Company & Another (MJC No.2185/2013) had pointed out that the accredited nature of the said organization was not established and it had therefore accepted the argument that no legal liability could be attached. The revenue has failed to state even we bit to establish the foreign/cross border territories the said goods (if at all were smuggled) had passed through to establish their smuggled character. The report of Arecanut R&D Foundation has not been d....