SURENDRA KUMAR JAIN Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THIS appeal is directed against the order dated 3-7-1987 passed by the Collector of Customs (Appeals), Madras, by which he had upheld the order passed by the Deputy Collector of Central Excise, Madras, dated 29-8-1986 confiscating absolutely a quantity of YKK zips of foreign origin totalling 46,648 Nos. under Section 111(d) of the Customs Act, 1962.

(2.) The facts in brief are that on information the Headquarters Preventive Unit of Madras Central Excise Collectorate inspected 3 gunny covered cases lying in the outward parcel office of the Madras Central Station on 27-8-1982, which led to the recovery of 46,648 Nos. YKK Nylon zip fasteners. The outer covers of the said 3 cases bore the words "S.M. Mehta, New Delhi". Since nobody came forward to claim the goods and there was no information available as to who brought the consignments for booking, the goods were seized by the officers for action under the Customs Act on the reasonable belief that they were imported in contravention of law. Subsequent to the seizure, Shri Subudhinath, partner of R.S. Enterprises of Madras, wrote a letter dated 6-9-1982 to the Assistant Collector of Madras, in which he said that he had taken delivery of 4000 dozens of YKK Nylon zip fasteners from M/s. Goyals Dresses, Madras on instructions from M/s. Surendra Stores, New Delhi, and had packed them in 3 tea-chests covered with gunny and had sent the same for booking by rail to Delhi on 27-8-1982 with his coolie. He said that the zips belonged to the Delhi firm. A statement was obtained from Shri Subudhinath Jain on 8-9-1982 in which he said that he knew appellant Surendra Kumar Jain of New Delhi who had requested him to take delivery of 4000 dozens of zip fasteners from M/s. Goyals, Madras, and despatch the same to him at Delhi. He said that after asking his coolie to book the goods to Delhi by train on 27-8-1982 he left for Tirupathi and when he returned on 30-8-1982 the coolie informed him that the goods had been seized and on seeing the officers of Customs he ran away. Appellant Surendra Kumar Jain in his statement on 8-9-1982 said that on receiving a telephonic message on 2-9-1982 from Subudhinath Jain of Madras about the seizure of the zips by the Customs he came to Madras on 5-9-1982 and enquired from Shri Goyal about the seizure of the zips and that he was told that the goods were licitly imported by M/s. Goyals. It is in these circumstances, following further investigation, proceedings were instituted against the appellant and the goods were confiscated by the order of the Deputy Collector, which was upheld by the Collector of Customs (Appeals), Madras.

(3.) SHRI Bhatia, the learned Senior D.R. appearing for the Department, contended that the claim for the goods from the appellant was belated and was not made immediately after the seizure. The version that the booking of the zip fasteners to Delhi was left to the coolie lacked conviction. The invoice produced by the appellant for the purchase of the goods from M/s. Goyals is not shown to be relatable to the goods under confiscation as during the adjudication proceedings M/s. Goyals did not come forward to prove the licit import of the goods against a valid licence.