COMMISSIONER OF CENTRAL EXCISE Vs. LALCHAND WADHWANI

JUDGEMENT

(1.) HEARD both sides and perused the records. The respondent is a trader from Indore. The Customs officers verified the stock as shown in the records and found 93 Mobile Phones. When questioned about them, the respondent stated that they had been purchased by him from shops of Burma Bazar (Chennai). Subsequently, the respondent also disowned the goods. The mobile phones were confiscated and the appellant imposed a penalty of Rs. 2 Lakhs, in adjudication. When the matter went before the Commissioner (Appeals), he set aside the penalty as the respondent had disowned the goods. The Commissioner also noted that mobile phones are not notified under Section 123 of the Customs Act and therefore, the respondent had no obligation to prove their licit import.

(2.) THE present appeal of the Revenue seeks restoration of the penalty on the respondent. There is no merit in this appeal. There is no case made out that the respondent had illegally imported the goods or had knowingly dealt in smuggled goods. As a trader located in an interior part of our country, he sources his supplies from port towns. There is nothing in law prohibiting the purchase of imported goods from one port town,, bringing them to an interior place and selling them.

(3.) THERE is no illegality or error in the order of the Commissioner. The appeal fails and is rejected. (Order dictated & pronounced in open Court on 20.2.2006.)