2014 (2) TMI 118 - AT - Customs

Confiscation of goods - Recovery of Swiss origin gold bar of 1 kg - Provisional release of gold on furnishing bank guarantee - Held that - father and the son were associated with the illegal import and were concerned with acquiring, carrying, keeping etc. of goods liable to confiscation under provisions of the Customs Act, 1962 - no grounds to interfere with the findings of fact recorded by the appellate authority as confirmed in appeal. There is neither any error in the appreciation of relevant facts nor any perversity in analysis of the evidence on record, nor in application of the appropriate statutory provisions, warranting appellate inference - Decided against assessee.

Summary

Issues:
1. Illegal import of goods under the Customs Act, 1962.
2. Confiscation and redemption of goods.
3. Imposition of penalties under the Customs Act, 1962.
4. Appeal against adjudication order.

Issue 1: Illegal import of goods under the Customs Act, 1962

The case involved the recovery of a Swiss origin gold bar during a routine check of a bus, leading to suspicions of illegal import. Statements from individuals involved indicated discrepancies in the purchase and sale of the gold bar, raising concerns of association with illegal activities. The customs authorities initiated proceedings based on these findings.

Issue 2: Confiscation and redemption of goods

The adjudication order confirmed the confiscation of the gold bar under Sections 111(d) and 111(o) of the Customs Act, 1962, valuing it at Rs. 9,40,000. The order provided an option to redeem the gold on payment of a fine of Rs. 5 lakhs under Section 125 of the Customs Act, 1962. Penalties were imposed on the individuals involved, while charges against a specific entity were dropped.

Issue 3: Imposition of penalties under the Customs Act, 1962

Penalties were imposed under Section 112(b) on the father and son for their involvement in the illegal import and possession of the gold bar. Additionally, a penalty of Rs. 1 lakh was imposed on M/s Vansh Enterprises. However, charges against M/s S.K. Impex, Delhi, were dropped.

Issue 4: Appeal against adjudication order

The appeals by the father and son were rejected by the appellate authority, concurring with the findings of fact and conclusions of the adjudicating authority. The judge found no grounds to interfere with the appellate authority's decision, citing no errors in the appreciation of facts, analysis of evidence, or application of statutory provisions. Consequently, the appeals were dismissed, and no costs were awarded.

This detailed analysis of the judgment highlights the key issues of illegal import, confiscation and redemption of goods, imposition of penalties, and the outcome of the appeal process, providing a comprehensive understanding of the legal proceedings and decisions involved in the case.