2001 (7) TMI 1019 - AT - Customs

Summary

Issues:
1. Confiscation of consignments and truck with redemption fine.
2. Imposition of personal penalties under Section 114 of the Customs Act, 1962.
3. Violation of principles of natural justice in imposing penalties without issuing show cause notice.

Analysis:
1. The Commissioner of Customs, Shillong, had confiscated two consignments of Phensedyl Cough Syrup valued at Rs. 21.41 lakhs and the truck transporting them, with a redemption fine of Rs. 50,000. Additionally, penalties of Rs. 5,00,000 each were imposed on the owners of the transport company, Shri Rajesh Agarwal and Shri Rakesh Agarwal. The appellants contested the confiscation of the truck and the personal penalties under Section 114 of the Customs Act, 1962.

2. The appellants argued that they were the owners of the trucks hired by M/s. Tripura Golden Transport Co. for transporting the consignment. The officers of customs intercepted the trucks and found discrepancies in the quantity of goods loaded compared to the cash memos produced. The officers suspected illegal export to Bangladesh and confiscated the goods. During investigations, it was revealed that the goods were intended for legitimate transactions within India.

3. The appellants contended that no show cause notice was issued to Shri Rajesh Agarwal, yet a personal penalty was imposed on him, violating principles of natural justice. The judge, after reviewing the evidence, found no involvement of the appellants in illegal activities. The goods were to be unloaded at the transporters' godown in Agartala, and the consignee was to collect the goods from there. As there was no evidence implicating the appellants in illegal export activities and no notice issued to Shri Rajesh Agarwal, the penalties and confiscation of the truck were deemed unjustified. The impugned order was set aside concerning the confiscation of the truck and the imposition of personal penalties on the appellants.