2018 (3) TMI 1499 - AT - Customs

Mis-declaration of export goods - Smuggling - Phensedyl Cough Linctus were packed inside the Cartoons under mis-declaration of Potatoes - N/N. 35/2008-Custom (N.T.) dated 02.04.2008 - Held that - the appellant s herein are acting on behalf of the Syndicate of smuggling of Phensedyl Cough Linctus and Recodex Cough Syrup - there are no reasons to interfere with the Order of the Adjudicating authority - appeal dismissed - decided against appellant.

Summary

Issues: Smuggling of Phensedyl Cough Linctus and Recodex Cough Syrup, Confiscation of goods, Imposition of penalties, Role of various parties, Adjudicating authority's findings

Smuggling of Phensedyl Cough Linctus and Recodex Cough Syrup:
The case involved the interception of vehicles loaded with goods declared as Potatoes but found to contain Phensedyl Cough Linctus under mis-declaration. The DRI Officers seized the goods with the belief that they were meant for illegal export to Bangladesh. The Commissioner of Customs confiscated the goods and imposed penalties on various parties under the Customs Act, 1962.

Confiscation of goods and Imposition of penalties:
The Commissioner of Customs, Central Excise, and Service Tax, Siliguri Commissionerate, confiscated the bottles of Phensedyl Cough Linctus and Recodex Cough Syrup, along with the carrier trucks and bags used for concealment. Penalties were imposed on individuals involved in the smuggling operation under various sections of the Customs Act, 1962.

Role of various parties:
The appellant, a registered trader of medicine, claimed innocence and argued that they were not involved in any illegal activities. The manufacturer provided details of the batches supplied to different locations. The Adjudicating Authority found that several parties, including carriers, occupants of trucks, and distributors, were knowingly involved in smuggling the restricted Cough Syrup under the guise of transporting potatoes.

Adjudicating authority's findings:
The Adjudicating Authority detailed the involvement of different parties in the smuggling operation, including abetting the smugglers, preparing false documents, and enhancing business through fraudulent practices. The authority held various parties liable for strict penal action under Section 114(i) of the Customs Act, 1962, and recommended prosecution under Section 135 for their involvement in smuggling activities.

In conclusion, the Tribunal upheld the impugned Order, rejecting all appeals filed by the appellants and disposing of stay applications and cross objections. The judgment highlighted the detailed findings of the Adjudicating Authority regarding the roles played by different parties in the smuggling of Phensedyl Cough Linctus and Recodex Cough Syrup, emphasizing strict penal actions under the Customs Act, 1962.