PHOOLA RAM Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THESE appeals are directed against order in appeal dated 13th July, 2004 that upheld the order in original vide which the foreign gold biscuits were absolutely confiscated and currency was also confiscated besides imposition of penalties on all the appellants.

(2.) THE following are the appeals as filed by the appellants:

(3.) THE relevant fact that arise for consideration are the Customs authorities while conducting road patrolling during the intervening night of 22/23 -10 -1997 intercepted a jeep carrying about 15 passengers. The Customs authorities recognizing appellant No. 2', asked him to present himself for search, which he informed the authorities that he is carrying some valuables in his canvas bag and hence he should be taken to a safe place for search. The Customs authorities on his request took him to the Customs office at Bikaner, along with driver and khalasi of the intercepted jeep. On detailed search and examination of the canvass bags and of his person, the authorities drew a Panchnama on the spot vide which they recovered 5 foreign marked gold biscuits of 10 tola each and Indian currency of Rs. 5,10,366/ - (Rupees Five Lakhs Ten Thousand Three Hundred and Sixty Six only). The appellant '2' could not produce any evidence regarding the gold being in his licit possession. Hence seizure of the currency and gold biscuits were effected. Statements of appellant '2' were recorded and in the statement, he stated that the gold biscuits were smuggled and the currency is in respect of the sale proceedings of smuggled silver. The appellant '2' also stated that he was an employee of appellant '4'. The authorities further conducted search of the business and residential premises of appellant No. '4' but nothing incriminating was recovered. After recording statements of all the appellants, the authorities issued a show cause notice proposing to confiscate the seized foreign marked gold biscuits and the Indian currency. The appellants contested the show cause notice on the ground that the department has not adduced evidence indicating that the gold biscuits were of smuggled nature and that Indian currency was for the payment to be made for purchase of agricultural land. The adjudicating authority did not agree with the contentions and absolutely confiscated the foreign marked gold biscuits and absolutely confiscated the Indian currency as being sale proceeds of smuggled foreign marked silver. He also imposed penalties on the appellants as indicated. On an appeal by the appellants, the learned Commissioner (Appeal) also concurred with the views of the adjudicating authority and upheld the order in original.