2002 (2) TMI 137 - CGOVT - Customs

Summary

Issues: Violation of natural justice principles, Cross-examination rights, Confessional statements validity, Imposition of penalty

Violation of natural justice principles:
The Revision Application filed against the Order-in-Appeal raised concerns regarding the violation of natural justice principles. The applicant argued that the show cause notice was issued while he was under COFEPOSA detention, and the personal hearing was conducted during his detention without providing an opportunity for cross-examination. Additionally, the applicant was not allowed to cross-examine the persons whose statements were relied upon by the Department. The applicant pointed out that the individuals whose statements were used had retracted them, claiming they were not voluntary. The applicant cited legal precedents to support the argument that the denial of cross-examination would vitiate the adjudication order. The Government, after considering the submissions, concluded that the principles of natural justice were not violated in the proceedings.

Cross-examination rights:
The applicant contended that the denial of the opportunity to cross-examine the persons whose statements were relied upon by the Department would impact the adjudication order. The Government highlighted legal judgments stating that cross-examination is not mandatory in customs proceedings and that confessional statements made before customs officials are admissible as substantive evidence. The Government emphasized that cross-examination is not a compulsory procedure in all cases and that the lack of cross-examination does not violate natural justice principles. The Government concluded that cross-examination would only be allowed if the proceedings justified it, and in this case, the strong evidence collected against the applicant justified the penalty imposed.

Confessional statements validity:
The investigation revealed confessional statements by the applicant and other individuals involved in smuggling activities. The statements detailed the smuggling operation, including the roles of the accused, the process of illegal currency exportation, and the individuals' involvement in the organized gang. The Government highlighted legal precedents stating that confessional statements made before customs officials are valid as substantive evidence and are binding, even if retracted later. The Government emphasized that the statements made before customs officers are not equivalent to those recorded under the Criminal Procedure Code and are considered material evidence under the Customs Act. The Government concluded that the confessional statements, along with corroborative and documentary evidence, established the applicant's culpability beyond doubt.

Imposition of penalty:
Based on the evidence collected during the investigation, including the seizure of foreign and Indian currency, incriminating documents, and confessional statements, the Government found that the applicant had violated the Customs Act and the Foreign Exchange Regulation Act. The Government noted the applicant's involvement in the organized gang specializing in illegal currency exportation and importation of foreign goods. The Government upheld the penalty imposed on the applicant, citing the strong evidence collected and the lack of coercion or threat reported by the applicant during the proceedings. The Government concluded that the penalty was rightly imposed based on the established culpability of the applicant.

Judgment:
The Government carefully considered the Order-in-Original, Order-in-Appeal, and the submissions made by the applicant before upholding the penalty imposed on the applicant for his involvement in the smuggling activities.