1986 (12) TMI 232 - AT - Customs

Finding of Criminal prosecution not binding on adjudication proceeding when evidence before the two is not same.

Summary

Issues Involved:
1. Ownership and control of the jeep used in transporting contraband goods.
2. Nexus between the appellant and the seized contraband goods.
3. Relevance of the appellant's acquittal by the Gujarat High Court in the criminal case.
4. Admissibility and probative value of statements made by co-accused and witnesses.

Issue-wise Detailed Analysis:

1. Ownership and Control of the Jeep:

The appellant argued that he was not concerned with the seized goods and that the jeep used belonged to Kika Sukar, not him, at the time of the seizure. The Gujarat High Court had set aside the appellant's conviction, noting that the jeep was not registered in his name at the relevant time and was sold to Kika Sukar before the seizure. The High Court emphasized the need for corroboration from independent sources, stating, "one tainted source cannot supply corroboration to another tainted source." The adjudicating authority, however, found evidence suggesting the jeep was under the appellant's control and used for transporting contraband goods. The Additional Collector relied on statements from witnesses, including those who were not traceable later, to establish the appellant's connection to the jeep.

2. Nexus Between the Appellant and the Seized Contraband Goods:

The appellant contended that there was no evidence linking him to the contraband wrist watches except for the statements of co-accused persons. The adjudicating authority, however, found that the contraband goods were loaded into the jeep by the appellant's men and transported from the sea-shore to his farmhouse. The Additional Collector noted the statements of several witnesses, including Durlabh Karsan and Babu Dheda, who admitted their involvement and identified the appellant as the orchestrator of the smuggling operation. The adjudicating authority concluded that the appellant had a significant role in the smuggling activities based on these statements.

3. Relevance of the Appellant's Acquittal by the Gujarat High Court:

The appellant's acquittal by the Gujarat High Court was argued to be relevant in the adjudication proceedings. However, it was noted that the findings of a criminal court are not binding on the adjudicating authority. The evidence before the criminal court differed from that before the adjudicating authority. The adjudicating authority relied on statements recorded under Section 108 of the Customs Act, which were found to be voluntary and truthful. The adjudicating authority is entitled to rely on such statements even if the criminal court requires independent corroboration for the same.

4. Admissibility and Probative Value of Statements Made by Co-accused and Witnesses:

The appellant argued that the statements of co-accused persons require corroboration and should not be relied upon solely. The adjudicating authority, however, found that the statements of witnesses, including those of co-accused persons, were voluntary and truthful. The Additional Collector scrutinized these statements carefully, considering them reliable. The adjudicating authority also noted that the evidence before the criminal court and the adjudicating authority was not identical, and the statements of witnesses not examined in the criminal court were crucial in establishing the appellant's involvement.

Conclusion:

The Tribunal upheld the findings of the adjudicating authority and the Central Board of Excise and Customs, concluding that the evidence before the adjudicating authority was sufficient to establish the appellant's involvement in the smuggling activities. The appeal was rejected, and the penalty imposed on the appellant was confirmed.