1986 (2) TMI 221 - AT - Customs

Summary

Issues Involved:
1. Imposition of personal penalties on the appellants.
2. Confiscation of 175 electronic circuits from G.K.D. Engineers.
3. Denial of principles of natural justice.
4. Harshness and justification of penalties imposed.

Detailed Analysis:

1. Imposition of Personal Penalties on the Appellants:
The Addl. Collector imposed personal penalties on the appellants based on their statements and the evidence gathered during the investigation. Appellant Chadha admitted to smuggling electronic parts, corroborated by the seizure of 425 pieces of electronic parts from his baggage. Kohli's statements supported Chadha's account, implicating both Kohli and Ahuja in the conspiracy. Kohli's retraction of his statement was considered belated and unsubstantiated. The Tribunal found the statements of Chadha and Kohli voluntary and reliable, establishing their involvement in smuggling activities. Ahuja's claim of being a sleeping partner was rejected based on the evidence of his active participation in the conspiracy.

2. Confiscation of 175 Electronic Circuits from G.K.D. Engineers:
The Addl. Collector ordered the confiscation of 175 electronic circuits seized from G.K.D. Engineers. Although Ahuja contended that the circuits were not proven to be of foreign origin, Kohli's statement confirmed that these circuits were part of the smuggled goods brought by Chadha. The Tribunal upheld the confiscation, noting that the burden of proof had been satisfactorily discharged by the Department.

3. Denial of Principles of Natural Justice:
Ahuja argued that he was denied the opportunity to cross-examine witnesses, thus violating the principles of natural justice. However, the Tribunal found no record of a request for cross-examination by Ahuja's advocate during the proceedings before the Addl. Collector. Consequently, this contention was rejected.

4. Harshness and Justification of Penalties Imposed:
The penalties imposed were reviewed for their harshness and justification. The Addl. Collector imposed Rs. 40,000/- each on Chadha and Kohli and Rs. 30,000/- on Ahuja without providing reasons for the discrepancy. The Tribunal found the penalties on Chadha and Kohli excessive compared to Ahuja's, given their similar roles in the conspiracy. The penalties were adjusted to Rs. 30,000/- for Kohli and reduced to Rs. 20,000/- for Chadha, considering his imprisonment, fine, and loss of employment.

Conclusion:
The Tribunal upheld the personal penalties and confiscation orders but modified the penalties to ensure fairness. The fixed deposit receipt seized from Chadha was ordered to be returned, as it was not proven to be proceeds from smuggling. The appeals were rejected with modifications to the penalties imposed.