“In the liberalized economy, foreign goods have free entry and found in the shops in abundance for almost each and every commodity.”
In a major decision the Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), ruled that the foreign markings ipso facto does not prove smuggled nature of the goods.
The appeal was filed by the appellant, Gagan Deorah, against the order, whereby the Additional Commissioner of Customs, has confiscated 510 bags 25,500 kgs of Yellow Peas and 11 bags 550 kgs of Motor Dal and the Commissioner (Appeals) vide the impugned order has approved the order of confiscation.
The original authority has held that the bags bear foreign markings, therefore, goods were illegally imported, and hence, confiscated the goods. The Commissioner (Appeals) has also approved the findings of the original authority.
The Counsel for the appellant argued that no evidence other than foreign markings on the bags was adduced by the Original Authority to prove that the goods were smuggled. No confiscation on the basis of mere markings is valid as under this analogy, all electronic goods having brand name Samsung, LG, Sony, etc., are to be seized. In the free economy, town seizure on the basis of marking is an impermissible act.
The Tribunal of P. K. Choudhury, Member (Judicial) observed that “I find that the seizure was made from the godown of the appellant at Shillong city, which is not connected to the International Border. Goods were purchased under valued documents, which are mix of Indian and imported origin and the purchase documents were not proven to be false or fake. No evidence other than foreign markings on the bags was adduced to prove that the goods were smuggled.”
The Bench further went on to clarify that foreign markings or foreign origin of goods by itself does not render the goods as smuggled. Burden to prove the smuggled nature of goods is on the Revenue. Such burden was not discharged by adducing any positive tangible evidence. Thus, foreign origin of the goods even proved, smuggled nature thereof is not proven.
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