2005 (6) TMI 429 - AT - Customs

Summary

Issues Involved:
1. Imposition of penalties under Section 112(a) and 112(b) of the Customs Act.
2. Appeals filed by individuals and entities against the penalties.
3. Confiscation of seized goods and Maruti Car.
4. Involvement of Lufthansa Cargo and its employees in smuggling activities.
5. Claim of ownership for seized currency by C.M. Medappa.
6. Appeal for release of the confiscated Maruti Car by Smt. Susheela Ramakrishna.

Issue-wise Detailed Analysis:

1. Imposition of Penalties under Section 112(a) and 112(b):
The Commissioner imposed penalties under Section 112(a) on various individuals and entities, including Shri Yahya Shabandri, Shri C.M. Uthappa, Shri H.S. Ramakrishna, and M/s. Lufthansa Cargo, among others. Penalties under Section 112(b) were imposed on individuals such as Shri Ramesh Jain and Shri Mohanlal. The penalties ranged from Rs. 10,000 to Rs. 50,00,000 based on their involvement in the smuggling activities.

2. Appeals Filed by Individuals and Entities:
Appeals were filed by Shri C.M. Uthappa, Shri H.S. Ramakrishna, and M/s. Lufthansa Cargo against the penalties imposed. Shri C.M. Medappa also appealed for the release of the cash amount seized from the premises of Shri C.M. Uthappa, claiming ownership.

3. Confiscation of Seized Goods and Maruti Car:
The Commissioner ordered the confiscation of seized goods, including contraband gold biscuits and video cameras, as well as a Maruti Car No. KA-04-M9081. The car was owned by Smt. P. Susheela Ramakrishna, W/o Shri H.S. Ramakrishna, Superintendent of Customs, Bangalore Airport.

4. Involvement of Lufthansa Cargo and its Employees:
The Customs officers, acting on specific information, kept surveillance on a Lufthansa Cargo flight and observed suspicious activities involving the off-loading and transportation of packages containing contraband gold biscuits and video cameras. The investigation revealed that Shri C.M. Uthappa, an Operational Manager at Lufthansa Cargo, instructed the unloading and delivery of the packages to a Maruti car driven by Shri H.S. Ramakrishna. The investigation also implicated other individuals, including Shri Yahya Shabandri and Shri Abdul Hafeez, in the smuggling activities.

5. Claim of Ownership for Seized Currency by C.M. Medappa:
Shri C.M. Medappa claimed ownership of the Rs. 3,61,000 seized from Shri C.M. Uthappa's residence, stating it was meant for purchasing a flat. The Commissioner rejected this claim, noting that the currency was proceeds of smuggled illicit gold, as admitted by Shri C.M. Uthappa. The Tribunal upheld this decision, finding no corroborative evidence to support Medappa's claim.

6. Appeal for Release of the Confiscated Maruti Car by Smt. Susheela Ramakrishna:
Smt. Susheela Ramakrishna appealed for the release of the Maruti Car, stating she was unaware of her husband's use of the car for smuggling activities. The Tribunal found no evidence of her involvement or knowledge of the smuggling activities. Considering her circumstances, the Tribunal allowed the release of the car on payment of a Redemption Fine of Rs. 25,000, to be deducted from the sale proceeds of the car.

Judgment:
The Tribunal upheld the penalties imposed on Shri C.M. Uthappa and Shri H.S. Ramakrishna, confirming their involvement in smuggling activities. The appeal of Shri C.M. Medappa for the release of seized currency was dismissed. The appeal of Smt. Susheela Ramakrishna for the release of the Maruti Car was allowed on payment of a Redemption Fine. The penalty imposed on Lufthansa Cargo was set aside, as the smuggling activities were conducted without the knowledge of the Airlines. The appeals were disposed of accordingly.