2007 (2) TMI 555 - AT - Customs

Summary

Issues Involved:
1. Confiscation of gold bars u/s 111(d) of the Customs Act.
2. Confiscation of silver bars u/s 111(p) of the Customs Act.
3. Imposition of penalties u/s 112(a) and 112(b) of the Customs Act.
4. Impact of acquittal in criminal proceedings on the adjudication order.

Summary:

1. Confiscation of Gold Bars u/s 111(d):
The appellant disowned the gold bars, which were found to bear foreign markings. The adjudicating authority ordered absolute confiscation of the 35 gold bars weighing 3421.390 gms valued at Rs. 14,13,034/-. The Tribunal upheld the absolute confiscation of the gold bars, and this decision was not challenged by the appellant.

2. Confiscation of Silver Bars u/s 111(p):
The appellant claimed ownership of the 111 silver bars weighing 855.126 kgs valued at Rs. 58,96,093/-, which did not bear foreign markings. The Tribunal initially remanded the case for fresh disposal regarding the silver bars. The Commissioner, on remand, ordered confiscation of the silver bars but allowed redemption on payment of a fine of Rs. 6.50 lakhs. The Tribunal found the redemption fine reasonable given the value of the goods.

3. Imposition of Penalties u/s 112(a) and 112(b):
The Commissioner imposed a penalty of Rs. 7.5 lakhs u/s 112(b) for the gold bars and Rs. 1.5 lakhs u/s 112(a) for the silver bars. The appellant contested these penalties, arguing that the penalties were higher than the composite penalty imposed earlier. The Tribunal reduced the penalties to Rs. 6.50 lakhs for the gold bars and Rs. 1 lakh for the silver bars.

4. Impact of Acquittal in Criminal Proceedings:
The appellant was acquitted by the Judicial Magistrate in criminal proceedings u/s 135(1)(b)(i) of the Customs Act. The appellant argued that the penalties should be set aside based on this acquittal. The Tribunal noted that the evidence considered by the Judicial Magistrate differed from that examined by the Commissioner. The Tribunal held that the appellant was not entitled to the benefit of the acquittal in the criminal case for the penalties imposed in the adjudication proceedings.

Conclusion:
The Tribunal sustained the impugned order with modifications to the quanta of penalties, reducing them to Rs. 6.50 lakhs for the gold bars and Rs. 1 lakh for the silver bars. The appeal was dismissed on merits.