Burden of proving Goods is of foreign origin is on Department on Providing Documentary Evidence: CESTAT [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench observed that the Burden of proving goods is of foreign origin is on Department on Providing documentary evidence.

In the present case vide seizure case, Officers from Siliguri (P & I) Branch, had seized 7,000 Kgs of Black Pepper collectively valued at Rs.49 lakhs from one Vehicle and the said vehicle was transporting Black Pepper from Aizol to Jharkhand along with some other goods.

M/s. Maa LiloriBhander had claimed ownership of 3,000 kgs. For the balance 4,000 kgs M/s. Maa MathurasiniBhander have come forward as owners. After investigation and due process, Show Cause Notice was issued to Maa LiloriBhander and Maa MathurasiniBhander and others.

The Adjudicating Authority ordered confiscation of carrier vehicle valued at 5 lakhs giving an option to redeem the same on payment of redemption fine of Rs one lakh fifty thousand. Penalties were imposed on other noticees as well. Aggrieved by the impugned OIO, Maa MathurisiniBhander and Maa LiloriBhander have filed present Appeals.

The Counsel for the appellants submitted that it is an admitted fact that even under the enquiry and investigation, it has come to the knowledge of the Department that 1300 kgs of Black Pepper has been proved to have been procured locally by the vendor. Therefore, he pleads that the entire case has been framed on assumptions and presumptions, and then the case is liable to be dismissed on merits.

The AR submitted that the goods were seized by the officials and a proper Panchnama was drawn and the Seizure Report was prepared as some of the packages had foreign markings. The official seizing had reasonable belief that these were goods of foreign origin.

The Bench of R. Muralidhar, Member (Judicial) observed that “The documentary evidence shown like GST Invoice, E-way Bill and Consignment Notes were available right at the time of Seizure and Department has not brought in any evidence to the effect that these are not legal documents. Once the Appellant is able to provide such documentary evidence, the burden of proving that the goods are of a foreign origin falls on the Department, which has not been done by them in the present case.”

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