2016 (10) TMI 1057 - AT - Customs

Penalty u/s 114 (i) of the Customs Act, 1962 - smuggling - red sanders - Held that - the appellant were instrumental in the buying and storing of seized red sander logs for ultimate smuggling out of India. It is also proved that the appellant had given ₹ 10,00,000/- for arranging and storing red sander logs procured, transport the same and handed over to one Shri Badhusha to facilitate the smuggling racket. In the circumstances, the appellant cannot claim innocence or that he has come to this forum with clean hands - appeal dismissed - decided against appellant.

Summary

Issues: Appeal against penalty under Section 114 (i) of the Customs Act, 1962.

Analysis:
1. The appellant did not appear during previous hearings despite adjournments requested. The tribunal decided not to grant further adjournments and proceeded to dispose of the appeal.

2. The appeal was against a penalty of ?7,50,000 imposed on the appellant under Section 114 (i) of the Customs Act, 1962.

3. The respondent argued that there was no infirmity in the penalty imposed as the appellant actively participated in a case involving seized red sanders.

4. The lower authority thoroughly examined the role of the appellant and another individual in buying, storing, and facilitating the smuggling of red sanders out of India. It was established that the appellant provided funds for arranging and storing the logs for smuggling purposes. The tribunal found the appellant complicit in the smuggling activities and dismissed the appeal, stating that the appellant cannot claim innocence.

Conclusion:
The tribunal upheld the penalty imposed on the appellant under Section 114 (i) of the Customs Act, 1962, based on the evidence of the appellant's involvement in the smuggling of red sanders. The appellant's appeal was dismissed, emphasizing that the appellant's actions demonstrated complicity in the illegal activities, leading to the rejection of any claims of innocence.