Collector Of Customs v. Om Prakash

[Order per : Jyoti Balasundaram, Member (J)]. - All the above six appeals by the Revenue arise out of the order dated 29-11-1990 of the Collector (Appeals) Customs and Central Excise, Chandigarh, and are hence heard together and disposed of by this common order.

2. The brief facts of the case are that on 26-12-1984 one Shri Shashi Bhushan was apprehended at Central Bus Stand, Amritsar and on a search of his person, Indian currency of Rs. 88,755/- concealed in Vansali tied around his waist was recovered. No evidence documentary or otherwise was produced in support of the lawful acquisition/possession by him of the recovered currency. He also tendered a statement on the same date that the amount represented sale proceeds of smuggled gold biscuits, and he also stated that one Sh. Om Prakash Singh came to him about two or three months back to go along with him to Amritsar to bring gold biscuits for which Shri Shashi Bhushan was to receive Rs. 100/- to Rs. 150/-. Shri Shashi Bhushan further stated that Shri Om Prakash introduced him to one Shri Jaspal Singh at Amritsar and that he and Shri Om Prakash went to Shri Jaspal Singh to hand over the money in exchange for gold biscuits. He disclosed that he had earlier acted as carrier in the transactions of delivering of gold biscuits from Jaspal Singh to Om Prakash in return for money delivered by Om Prakash through him to Jaspal Singh. During further investigations nothing incriminating was recovered from the search of the residential premises of Jaspal Singh, Om Prakash or Shashi Bhushan. Show cause notice was issued and the adjudication order was passed by which the Indian currency seized was absolutely confiscated under Section l21 of the Customs Act, 1962 and penalties were imposed on the respondents herein. On appeal, the lower appellate authority set aside the orders of the Deputy Collector and directed release of the currency. Hence this appeal by the Department.

3. We have heard Shri Bhartia, learned DR and Shri G.S. Bhangoo and Shri J.S. Agarwal, learned Advocates for the respondents.

4. We find that the case of the Department against the respondents is based solely upon the statement of Shri Shashi Bhushan, who has stated that on 26-12-1984 Om Prakash gave him money and directed him to go to Jaspal Singh at Amritsar and bring gold and it was this money which was seized from him when he reached the Central Bus Stand at Amritsar. There is no other independent evidence available with the Department to corroborate the statement of Shashi Bhushan which we find was immediately telegraphically retracted by him and subsequently retracted in the reply dated 5-8-1985 to the show cause notice. The search conducted at the residence of Shri Jaspal Singh resulted in no recovery and nothing incriminating was recovered from the search of the business and residential premises of Om Prakash. Shri Inderjit Singh and Shri Trilok Singh and Shri Harbhajan Singh have claimed ownership of the currency which they state was sent through Shri Shashi Bhushan to one Dalip Singh in Amritsar and their claims have been disbelieved only on the ground that the claimants could not disclose the denominations of the currency notes. We find that the details of the currency have been furnished by Inderjit Singh. We agree with the lower appellate authority that the Department has not discharged the burden of proof cast upon it under Section 121 in this case which is entirely built upon the statement of Shashi Bhushan. This piece of evidence is not sufficient in establishing any relationship between the seized currency and the respondents. The ingredients for establishing contravention of Section 121 have not been satisfied in the instant case. Therefore, we see no reason to interfere with the impugned order.

5. In the result we uphold the impugned order and reject the appeals and direct release of the seized currency to the claimants thereof.