SHIV SHANKAR SONI Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) In this appeal, the appellant has challenged the imposition of penalty of Rs. 85,0007 - under Section 112 of the Customs Act on account of seizure of 8 foreign marked gold biscuits weighing 116 tolas from him by the police officers of Katni Police Station which were later on handed over by the police to the Customs Officers.

(2.) On recovery of 8 gold biscuits of foreign origin from the possession of the appellant, he was served with the show cause notice for confiscation of the same as well as for imposition of penalty under Section 111 and 112 of the Customs Act, as he failed to produce any document at the time of seizure about the legal possession and import of the same. During investigation, it also revealed that funds were being provided to him for import of gold biscuits by one Rakesh Soni and notice was also issued to him as noticee No. 2. They both controverted the allegations made in the show cause notice. The adjudicating officer ordered confiscation of the gold biscuits under Section 11(d) and imposed penalty of Rs. 85,000/ - on the appellant. However, the Indian currency recovered from the appellant was ordered to be released. Since the involvement of the other noticee, i.e. Rakesh Soni (noticee No. 2 in SCN) was not proved, the proceedings against him were dropped. 2. Learned Counsel has contended that there is no evidence to prove the smuggled character of the seized gold biscuits and as such, no penalty could be imposed on the appellant. The burden of proving that the gold biscuits were smuggled into India was on the Department; but the Department has failed to discharge the same. The learned Counsel placed reliance in this regard on the ratio of law laid down in R. Ramesh v. Collector of Customs -1987 (27) E.L.T. 675.

(3.) The learned JDR has reiterated the correctness of the impugned order.