2001 (12) TMI 597 - AT - Customs

Summary

Issues:
Appeal against imposition of penalty of Rs. 50,000 under Section 112 of the Customs Act, 1962.

Detailed Analysis:

Issue 1: Reliability of Evidence
The appellant's counsel argued that the only evidence on record was the statement of the truck driver, who was illiterate and may not have accurately provided the appellant's name and telephone numbers. The appellant denied the allegations and had not claimed the goods. The counsel contended that since the goods had not reached the appellant, no penalty should be imposed under Section 112(a) or (b). He relied on a previous Tribunal decision to support his argument.

Issue 2: Respondent's Submission
The respondent argued that the foreign origin goods found in the truck, along with the diary containing the appellant's name and telephone numbers, were sufficient evidence to establish the appellant's involvement with the goods. The respondent contended that the driver's transport of the goods to Kanpur did not invalidate the evidence. It was asserted that the violation of Section 112 was evident, and the penalty imposed was justified considering the value of the goods.

Judgment
After considering the submissions and evidence, the judge noted that the driver's statement indicated the goods were meant for the appellant, and the diary further confirmed the appellant's identity through telephone numbers. The judge found the provisions of Section 112 applicable in this case, despite the goods not reaching the appellant. The judge distinguished the cited case law as not relevant due to differing facts. Consequently, the penalty under Section 112 was upheld but reduced to Rs. 15,000 due to the value of the goods and the overall circumstances of the case. The appeal was disposed of with the modified penalty amount.