SH. HARI SHANKAR AND SH. VIJAI Vs. CC

JUDGEMENT

(1.) Both the appeals are filed common order -in -appeal passed by the Commissioner (Appeals).

(2.) The brief facts of the case are that on 3.4.98 the officers of Revenue searched the premises of Shri Hari Shankar, appellant and 86 Kgs. of Chinese silk yarn was recovered from the premises which was seized on the reasonable belief that the yarn in question is smuggled in nature and liable for confiscation. The adjudicating authority confiscated the yarn and imposed penalties of Rs. 10,000/ -on the appellants. The appellant filed appeal and the Commissioner (Appeals) reduced the penalties to Rs. 5000/ - each.

(3.) The contention of the appellant is that they were engaged in twisting of raw silk yarn and they were got this silk yarn from Sh. Anil Mishra and Sh. Deepak Mishra and also from other persons and after twisting this yarn the same was supplied in the market. The contention is that some times the yarn was supplied by their customer for twisting purposes. The contention is that the raw silk yarn is not notified under Section 123 of Customs Act, therefore, the onus is on the Revenue to show that the seized yarn is smuggled into India. The contention is that the appellant specifically mentioned that they are purchasing from Anil Mishra and Deepak Mishra and they were also co -noticee in the proceedings but the adjudicating authority dropped the proceedings against Anil Mishra and Deepak Mishra. The contention is that as the yarn is procured from the market and there was no evidence on record to show that the yarn in question is smuggled into India.