(1.) This appeal has been directed against the impugned order -in -original dated NIL passed by the Commissioner (Appeals).
(2.) The appeal was initially filed by Shri A.N. Agarwal, appellant, against whom a penalty of Rs. 1 lakh had been imposed under Section 112 of the Customs Act and his claim for release of 7 gold biscuits (out of total 19 seized gold biscuits) had been declined. He, however, during the pendency of the appeal died and his widow, Smt. Mamta Agarwal, was brought on record.
(3.) The facts are not much in dispute. On 18 -3 -2000, the police officers of Rath (Hamirpur) conducted search of the residential premises of Shri Rakesh @ Kallu and effected recovery of 19 gold biscuits of foreign origin and Indian currency of Rs. 9,37,722/ -. They, later on, informed the Customs Authorities and on receipt of the information, the Customs Officers took possession of the seized biscuits and the Indian currency on 31st March, 2002 after drawing proper Panchnama. At the time of recovery, the police also recorded statement of Shri Rakesh @ Kallu wherein he stated that the goods recovered belonged to Shri Tulsidas Agarwal, neighbour, who had kept the same with him due to security reasons. Thereafter, the Customs Officers also recorded his statement wherein he disclosed that the goods were left at his house by Smt. Susheela Devi, wife of Shri Tulsidas Agarwal and his daughter Smt. Suman Agarwal, for security reasons, and that he came to know the contents, and the nature of the goods which were in the trunks, only when the police opened those trunks. He also disclosed that Shri Tulsidas Agarwal was known to him for more than 10 years and was not only a cloth merchant and also doing some money lending business. Thereafter, the Customs Authorities summoned Shri Tulsidas Agarwal, who claimed the biscuits and the Indian currency, being the owner. He further disclosed that he had purchased the biscuits from the market and the Indian currency seized was his income from the business transactions. Statement of Shri Tulsidas Agarwal was recorded again on 26 -8 -2000 wherein he claimed 12 biscuits for having purchased the same from M/s. Brijwasi Distributors, Lucknow, under invoices during the period 7 -1 -2000 to 6 -3 -2000. He also produced the photo copies of those invoices along with the affidavit He further in his statement disclosed that the other 7 biscuits belonged to his son, Shri A.N. Agarwal (now deceased), who purchased the same from M/s. Dhan Cholia Sons under the cover of invoices. Thereafter, Shri A.N. Agarwal, also appeared before the Customs Authorities and made a statement vide which he claimed the 7 biscuits and produced the copies of 4 invoices vide which he purchased the same from M/s. Dhan Cholia Sons, Chandni Chowk, Delhi.