Confiscation, penalties and vehicle seizure quashed; smuggling not proven; burden under s.110(1) and s.123, s.138B issues

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....CESTAT allowed the appeal and set aside the order of confiscation, penalties and vehicle seizure. The Tribunal found the seizure was a town seizure and that Revenue failed to prove the silver granules were smuggled or of foreign origin; the items are not notified under s.123 and Revenue bore the burden to demonstrate smuggling under s.110(1). Documentary evidence showed payment of IGST and GST returns supporting domestic procurement, and statements relied upon were not subjected to cross-examination as required by s.138B, rendering them inadmissible. Consequential penalties under ss.112(a), 112(b) and 114AA and confiscation of the goods and conveyance were held unsustainable and were set aside. Appeal disposed.....