2002 (10) TMI 700 - AT - Customs

Summary

Issues:
1. Confiscation of goods and imposition of penalties by the Commissioner of Customs, Shillong.
2. Allegations of smuggling Phensedyl Cough Linctus to Bangladesh.
3. Involvement of M/s. Zenith Drugs & Allied Agencies (P) Ltd., M/s. Dooars Transport Ltd., and M/s. Tripura Pharma Co.
4. Statements and actions of involved parties leading to the confiscation.

Issue 1: Confiscation of goods and imposition of penalties
The Commissioner of Customs, Shillong, passed an order confiscating 1,060 cartons of Phensedyl Cough Linctus and imposed penalties on various individuals and companies involved. The goods were seized based on suspicion of illegal exportation to Bangladesh due to a history of smuggling. Investigations revealed discrepancies in the consignment's delivery process, leading to the confiscation and penalties.

Issue 2: Allegations of smuggling
The Customs Officers seized the goods from M/s. Dooars Transport Ltd.'s premises, suspecting illegal export to Bangladesh. The investigation uncovered a chain of events involving M/s. Zenith Drugs & Allied Agencies (P) Ltd., the C. & F. Agent, and M/s. Tripura Pharma Co. The goods were diverted from their intended destination, leading to suspicions of smuggling.

Issue 3: Involvement of companies and individuals
M/s. Zenith Drugs & Allied Agencies (P) Ltd. and M/s. Dooars Transport Ltd. were found to be involved in the transportation and handling of the seized goods. Statements from involved parties, including the C. & F. Agent's Managing Director and the transporters, revealed discrepancies in the delivery process and the issuance of forged invoices. The penalties were imposed based on the parties' roles in the transaction.

Issue 4: Statements and actions of involved parties
Statements from various individuals, including the C. & F. Agent's Managing Director and the owner of M/s. Tripura Pharma Co., provided insights into the transaction process and discrepancies in the documentation. The Commissioner observed the proximity of the godown to the Bangladesh border, indicating a potential smuggling attempt. Penalties were upheld for M/s. Zenith Drugs & Allied Agencies (P) Ltd. but set aside for the Managing Director and the transport company based on the evidence presented.

This judgment highlights the complexities of cross-border trade regulations, the responsibilities of involved parties, and the legal consequences of non-compliance and suspicious activities in the customs clearance process.