Priya Blue Industries Pvt. Ltd. Vs. the Commissioner of Customs - Court Judgment

Excerpt:

.....filed by the appellants before the commissioner (appeals). he also submits that the original adjudicating authority has referred to some bank certificate in support of its finding that the metal coins are in fact foreign currency, but this bank report was never supplied to them at any point of time. both the authorities below have proceeded as if the said coins are undisputedly foreign currency, whereas the fact is otherwise.3. after hearing the ld. dr, i find that the appellants had taken its specific plea before the commissioner (appeals) that the coins, which have considered as currency by the revenue are, in fact, metal coins of standard weight, basically related with the casino games. in view of the above plea, it was obligatory on the part of the revenue to first prove that the metal coins in question, nothing but foreign currency.in fact, i find that the commissioner (appeals) does not rely with the above contention of the appellants. as such, i am of the view that the matter needs to go back to the appellate authority for fresh decision after considering the additional submissions filed before him.

Judgment:

1. After hearing Shri Naresh Thacker, Ld. Advocate appearing for the appellants and Shri Pramod Kumar, Ld. JDR for the revenue, I find that vide impugned order, the lower authorities has held that the appellants, who are engaged in the business of ship breaking, have imported USA currency in the shape of Dollar Coins and Cent Coins.

Accordingly, the same has been confiscated with an option to the appellants to redeem the same on payment of fine of Rs. 7 lakhs. In addition, personal penalty of Rs. 1 lakh has been imposed upon the appellants.

2. The appellants case, primarily is that they had imported the ship and while breaking the same, they had also scrapped the Casino machines fitted therein. Its so happened that the said Casino machines were having some plastic as also metal coins stuck therein, which were collected by them and kept aside. It is their contention that the said coins are not USA currency and the same are meant for playing the Casino games. The appellant's grievance is that though this plea was taken up them before the authorities below, the same has not been considered and appreciated. Ld. Advocate draws my attention to the additional submissions filed by the appellants before the Commissioner (Appeals). He also submits that the original adjudicating authority has referred to some bank certificate in support of its finding that the metal coins are in fact foreign currency, but this bank report was never supplied to them at any point of time. Both the authorities below have proceeded as if the said coins are undisputedly foreign currency, whereas the fact is otherwise.

3. After hearing the Ld. DR, I find that the appellants had taken its specific plea before the Commissioner (Appeals) that the coins, which have considered as currency by the revenue are, in fact, metal coins of standard weight, basically related with the Casino games. In view of the above plea, it was obligatory on the part of the revenue to first prove that the metal coins in question, nothing but foreign currency.

In fact, I find that the Commissioner (Appeals) does not rely with the above contention of the appellants. As such, I am of the view that the matter needs to go back to the appellate authority for fresh decision after considering the additional submissions filed before him.