2017 (10) TMI 816 - AT - Customs

Smuggling - 24 numbers gold biscuits weighing 2.8 kgs - evidences on record like statements of all the persons, forensic data, the passport of all the individuals - confiscation of vehicle of Smt Fatimath Rubeena - Held that - The appellant Smt. Fatimath Rubeena has not factually controverted the findings recorded by the adjudicating authority as there is corroboration of the fact that vehicle was to be used for transport of smuggled gold and was also used earlier - confiscation upheld. Shri Abdul Basheer - the adjudicating authority recorded a finding on the role attributed to Shri Abdul Basheer in paragraph No. 84 and relied upon the independent statements of various persons to hold that this appellant had recruited individual into aiding in the smuggling of the gold and was waiting outside the airport to collect the smuggled goods. He has also recorded a finding that this appellant was helping to organize the smuggling of gold biscuits through Calicut International Airport using carriers - Held that - As against such detailed findings, in my view there is no effective contradiction of the same by this appellant - impugned order upheld. Shamsuddin K.A - confiscation - penalty - the appellant has tried to change the adjudicating authorities findings by stating that there was no verification of accounts maintained in appellant s shop before seizing the currency; ingredients required for confiscation of sale proceeds of smuggled goods - Held that - there are no evidences to show that the Indian currency of ₹ 25,77,500/- is the sale proceeds of smuggled gold, in view of which, I hold that the absolute confiscation or confiscation of the Indian currency of ₹ 25,77,500/- is incorrect and not in accordance with law and needs to be set aside - In the absence of any evidence to indicate that the Indian currency of ₹ 25,77,500/- was sale proceeds of the smuggled gold, I find that the penalty imposed on this appellant is unwarranted and liable to be set aside and I do so. Shri Ummer Abdulla - penalty u/s 112(a) and (b) of the CA - Held that - I do not find any reason to interfere in such detailed findings recorded by the adjudicating authority which clearly brings out the role attributable to this appellant in the smuggling of gold, hence the penalties imposed on this appellant are upheld and the appeal is rejected. Shri Althaf K.M - penalty u/s 112(a) and 114(AA) of the CA - Held that - nothing is recorded in the mahazar; no evidence is brought on record linked appellant with any of the so called gold smuggling in fact members; appellant has not done any act or omission which was rendered the goods liable for confiscation under Customs Act. Hence penalty imposed on the appellant under Section 112(a) is incorrect as also under Section 114(AA) of the Customs Act, 1962 - further, It is also recorded that the appellant had not made any declaration about bringing gold to the Customs authorities when he arrived at Calicut Airport from Dubai and appellant himself has admitted in the statement recorded that the gold which he had handed over would have been transported out of the Airport without Customs clearance. In my view, the finding recorded by the adjudicating authority is correct and does not require any interference. Shri Manoj P - penalty u/s 112(a) of the CA 1962 - Held that - It is noticed that in the findings the adjudicating authority has brought on record that this appellant was recruited by Shri Abdul Basheer to aid smuggling of the gold and was paid consideration; the statement of Shri Althaf indicated that this appellant was handed over gold within the Airport premises. I do not find any reason to hold contrary to detailed findings recorded by the adjudicating authority to impose penalty on this appellant - penalty upheld. Appeal allowed in part.

Summary

Issues:
Appeal against Order-in-Original involving penalties for smuggling gold and vehicle confiscation.

Analysis:
1. Involvement in Smuggling:
- All appellants found involved in smuggling gold biscuits.
- Adjudicating authority considered evidence like statements, forensic data, and passports.
- Penalties imposed under various Sections for smuggling activities.
- Confiscation of gold and currency, release of legitimately imported items.

2. Challenge by Fatimath Rubeena:
- Challenged vehicle confiscation despite lack of evidence of her knowledge.
- Adjudicating authority's findings corroborated vehicle's involvement.
- Upheld vehicle confiscation as legal and correct.

3. Abdul Basheer's Appeal:
- Appeal focused on technicalities rather than factual findings.
- Detailed findings by adjudicating authority on Basheer's role in smuggling.
- No effective contradiction by Basheer, so findings upheld as correct.

4. Shamsuddin K.A.'s Appeal:
- Contested confiscation of currency without proper verification.
- Lack of evidence linking currency to smuggled gold.
- Confiscation of currency set aside, penalty imposed deemed unwarranted.

5. Ummer Abdulla's Appeal:
- Contesting penalties under Customs Act sections.
- Detailed findings by adjudicating authority on Abdulla's role in smuggling.
- Penalties upheld based on evidence against Abdulla's involvement.

6. Althaf K.M.'s Appeal:
- Penalized under specific Customs Act sections.
- Adjudicating authority's findings on Althaf's actions upheld.
- Correctness of penalties imposed confirmed.

7. Manoj P's Appeal:
- Challenged penalty imposition under Customs Act section.
- Adjudicating authority's detailed findings on Manoj's involvement upheld.
- Penalties upheld based on evidence against Manoj's role in smuggling.

8. Overall Disposition:
- Appeals disposed of based on individual merits and evidence.
- Final order pronounced on 10/10/2017.