1987 (1) TMI 268 - AT - Customs

Issues Involved:
1. Maintainability of the appeals filed by M/s Kamani Engineering Corporation Ltd. and M/s Polychem Ltd.
2. Whether M/s Polychem Ltd. are aggrieved persons entitled to challenge the order of confiscation.
3. Validity of the order of confiscation and fine in lieu of confiscation imposed by the Dy. Collector and confirmed by the Board.

Detailed Analysis:

Issue 1: Maintainability of the Appeals
The preliminary objection raised by the Departmental Representative, Shri Pal, questioned the maintainability of the appeals. He argued that M/s Kamani Engineering Corporation Ltd. had given up their contention regarding the order of confiscation before the Board and thus could not file a revision against the Board's order. The Tribunal upheld this objection, noting that the Board's order explicitly stated that M/s Kamani Engineering Corporation Ltd. was not interested in appealing against the confiscation of the goods. Consequently, the appeal filed by M/s Kamani Engineering Corporation Ltd. was rejected as they had no cause of action left.

Issue 2: Whether M/s Polychem Ltd. are Aggrieved Persons
Shri Taleyarkhan, representing the appellants, argued that M/s Polychem Ltd. were vitally interested in the case and should be considered aggrieved persons entitled to challenge the confiscation order. He cited the show cause notice which included allegations against M/s Polychem Ltd. and referenced the Dy. Collector's findings that M/s Polychem Ltd. were responsible for the unauthorized importation. However, Shri Pal countered that M/s Polychem Ltd. were not the importers and had no legal right or title to the goods. The Tribunal agreed with Shri Pal, stating that the allegations in the show cause notice were made only to impose penalties under Section 112 of the Customs Act, and not to confer any legal right to the goods on M/s Polychem Ltd.

Issue 3: Validity of the Order of Confiscation
The Tribunal examined whether the order of confiscation could be disturbed at the instance of M/s Polychem Ltd. The Tribunal noted that M/s Kamani Engineering Corporation Ltd. were the actual importers and had given up their contention regarding the confiscation order. The Tribunal found no merit in the argument that M/s Polychem Ltd. could challenge the confiscation order, as they had no legal right or interest in the goods. The Tribunal also dismissed the argument that there was an agreement between M/s Polychem Ltd. and M/s Kamani Engineering Corporation Ltd. for the delivery of goods post-clearance, as no such agreement was produced and no consideration had passed.

Conclusion:
The Tribunal upheld the preliminary objection regarding the maintainability of the appeals and rejected the appeals filed by M/s Kamani Engineering Corporation Ltd. and M/s Polychem Ltd. The Tribunal concluded that M/s Polychem Ltd. could not challenge the order of confiscation as they were not aggrieved persons with any legal right or interest in the goods. The order of confiscation and fine in lieu of confiscation imposed by the Dy. Collector and confirmed by the Board was upheld. Both appeals failed and were rejected.

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