2003 (11) TMI 529 - AT - Customs

Confiscation and penalty - Smuggled goods - Stay/Dispensation of pre-deposit - Absolute confiscation

Summary

Issues: Confiscation of goods for illegal export, imposition of personal penalty

The judgment by the Appellate Tribunal CESTAT, Kolkata involved the confiscation of synthetic/silk/cotton printed sarees valued at Rs. 24.81 lakhs and the imposition of personal penalties on the appellants. The goods, of Indian origin, were seized from the licensed premises of the appellants, who had purchased them from shopkeepers in Calcutta. The Commissioner alleged that the sarees were intended for illegal export to Bangladesh based on the appellants' initial statement and the cash purchase of the sarees, indicating insufficient funds. However, the Tribunal found these facts insufficient as legal evidence to conclude an attempt to export the goods illegally. Consequently, the Tribunal dispensed with the pre-deposit condition of the imposed penalties and scheduled the main appeals for a later date.

This judgment highlights the importance of legal evidence in cases of confiscation for illegal export. The Tribunal emphasized that mere statements and circumstantial evidence, such as cash purchases, may not be adequate to establish guilt. The decision to dispense with the pre-deposit of penalties indicates a cautious approach by the Tribunal, ensuring fairness in the proceedings. By fixing a future date for the main appeals, the Tribunal allows for a more detailed examination of the case, indicating a thorough and deliberate review process. Overall, the judgment underscores the need for substantial legal proof before confiscating goods and imposing penalties, maintaining the principles of justice and due process.