TaxTMI 
TaxTMI 
2004 (12) TMI 146
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....re confiscated and a penalty of Rs. 25,000/- imposed on each of the appellants. The facts of the case are that on 24-12-1999 the silver in question was seized from a gipsy in which the two appellants were travelling. Shri Shambhu Nath claimed about 96 kgs. of silver and the other claimed the remaining. They are both jewellers. 2. In the adjudication order it has been held that the silver in quest....
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....finery, Gorakhpur. Learned Counsel has pointed out that the list of the items sold shows that the pieces were of varying weight and purity. Thus, confirming that they are Kachha silver obtained from melting of ornaments and another articles. The contention of the Counsel is that such silver is most unlikely to be smuggled silver. Learned Counsel has also referred to the statement dated 25-12-1999 ....
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....ot on the Revenue. Circular No. 394/233/88-Cus., (AS) of CBEC laid down the ground rules about invoking the provisions of Section 123. Para 2 of that circular states as under :- "2. In order to prevent the possibility of undue harassment to law abiding persons possessing small quantities of silver bullion of Indian origin, it has been decided that normally the provisions of Section 123 of the Cus....
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....ng items of ditching purity. Such items are not normally smuggled inasmuch as it is difficult to deal in small pieces of varying purity in a clandestine manner. This is recognised by the circular also. I am, therefore, in agreement with the learned Counsel that no action was called for in the present case. With regard to the statements, it is to be noticed that, while in the first statement, the a....