2016 (2) TMI 142 - AT - Customs

Maintainability of revenue appeals - Power of the tribunal to consider points in the appeal - Respondents / assessee contended that the Committee of Chief Commissioners while exercising power u/s 129D of the Act to authorize filing of appeal by Revenue did not hold that the order appealed was neither legal nor proper, while such objection was neither made by respondents earlier before Tribunal in the first round of litigation nor before Hon ble High Court in appeals. Held that - The Appellate Tribunal can not only go into points arising out of the decision or order as may be specified by the Committee of Chief Commissioners, but also go into the points raised by the respondent in its cross-objections. In other words, the Tribunal is not obligated to confine its scope only to the decision on the points arising out of the order or decision as may be specified by the Committee of Chief Commissioners, but also cover the points raised in the memorandum of cross-objections but in the absence of the cross- objections, the Tribunal is to confine itself only for the determination of such points arising out of the order of the Commissioner as may be specified by the Committee of Chief Commissioners in its order. On the basis of evidence on record against each respondent, the Commissioner s findings exonerating each of them are legal and proper and accordingly, the Revenue s appeals are to be rejected - Decided against the revenue.

Issues Involved:
1. Maintainability of Revenue's Appeals
2. Evidence against Customs Officers
3. Imposition of Penalties

Detailed Analysis:

1. Maintainability of Revenue's Appeals:
The respondents challenged the maintainability of the Revenue's appeals, arguing that the Committee of Chief Commissioners did not explicitly state that the orders appealed were "neither legal nor proper." The Tribunal addressed this by stating that the Committee's power under Section 129D of the Customs Act is administrative, not judicial, and does not involve a review or revision of the order. The Tribunal emphasized that the Committee's role is to ensure that frivolous appeals are not filed, and the absence of the words "neither legal nor proper" does not make the appeals invalid. The Tribunal concluded that the appeals are maintainable and should be decided on their merits.

2. Evidence against Customs Officers:
The evidence against the customs officers included statements from various individuals and records of telephonic contacts. The Tribunal noted that the statements of R.N. Zutshi, who implicated several officers, were crucial. However, these statements were retracted, and there was no corroborative evidence. The Tribunal emphasized that the standard of proof in quasi-judicial proceedings is "preponderance of probability," not "proof beyond a reasonable doubt."

For each officer, the Tribunal examined the evidence individually:
- Kamal Bajaj: The evidence included 56 telephonic contacts with Mamoor Khan and one with Ms. Shahlo. The Tribunal found that this evidence alone was insufficient to prove abetment of smuggling.
- V.S. Teotia and A.K. Varshney: The evidence included one telephonic call from their shared residence to Mamoor Khan. The Tribunal found this evidence insufficient to establish abetment.
- Praveen Teotia, J.A. Khan, Vinod Kumar Kain, R.K. Dacolia, and D.S. Nandal: The evidence was primarily the statement of R.N. Zutshi, which was retracted. The Tribunal found no corroborative evidence.
- Neeraj Kumar: The evidence included 25 telephonic contacts with Mamoor Khan. However, the phone was registered to another person, and there was no inquiry with that person. The Tribunal found this evidence insufficient.
- Yashvir Singh, S.D. Rajpal, S.A. Lamb, and V.K. Bhardwaj: The evidence was limited to a few telephonic contacts. The Tribunal found this insufficient to prove abetment.

3. Imposition of Penalties:
The Tribunal found that the evidence against the officers did not meet the standard of "preponderance of probability." The statements of R.N. Zutshi were not corroborated, and the telephonic contacts alone were insufficient to establish abetment. The Tribunal concluded that the Commissioner's decision to exonerate the officers was not illegal or improper. Therefore, the appeals filed by the Revenue were dismissed, and no penalties were imposed on the officers.

Conclusion:
The Tribunal held that the appeals by the Revenue were maintainable. However, upon examining the evidence against each officer, the Tribunal found it insufficient to establish abetment of smuggling. The Commissioner's decision to exonerate the officers was upheld, and the appeals filed by the Revenue were dismissed.

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