1987 (10) TMI 190 - AT - Central Excise

Summary

Issues:
- Imposition of penalty under the Customs Act, 1962 and the Gold (Control) Act, 1968.
- Credibility of statements recorded from Venilal Mehta and his daughter.
- Corroboration of evidence to support the statements.
- Denial of opportunity for cross-examination.
- Jurisdiction of the Collector of Customs to impose penalties under two enactments.
- Impact of acquittal in criminal prosecution on the impugned order.

Analysis:

The judgment pertains to appeals arising from an order imposing a penalty of Rs. 50,000 on the appellant under the Customs Act, 1962, and the Gold (Control) Act, 1968. The case involved the recovery of 60 gold biscuits of foreign origin from Venilal Mehta and his daughter, implicating the appellant in prior transactions of contraband gold. The appellant challenged the credibility of the statements recorded from Venilal Mehta and his daughter, alleging coercion and retraction. The appellant also argued for substantial corroboration as per legal requirements.

The Tribunal carefully analyzed the statements of Venilal Mehta and his daughter, concluding that they were voluntary, detailed, and credible. Despite retractions, the Tribunal found no evidence to support coercion claims. The Tribunal emphasized the need for corroboration, which was found in the statements of other witnesses and documentary evidence, strengthening the case against the appellant. The Tribunal dismissed the argument that the statements were coerced and highlighted the lack of evidence to substantiate such claims.

Regarding the denial of the opportunity for cross-examination, the Tribunal ruled that since the appellant did not cross-examine Venilal Mehta and his daughter, the plea lacked substance. The Tribunal also rejected the argument challenging the jurisdiction of the Collector of Customs to impose penalties under both enactments, emphasizing the legality of such actions when specific provisions exist.

Furthermore, the Tribunal addressed the impact of the appellant's acquittal in a criminal prosecution on the impugned order. It clarified the distinction between standards of proof in criminal cases and adjudicating authorities, emphasizing the preponderance of probabilities required in the latter. The Tribunal upheld the findings of the adjudicating authority, confirming the charge of abetment against the appellant under the Customs Act, 1962, and the Gold (Control) Act, 1968.

In conclusion, the Tribunal dismissed the appeals, affirming the penalty imposed on the appellant due to his involvement as an abettor in the transportation of contraband gold. The Tribunal found no grounds for remand based on the circumstances of the case and upheld the penalty imposed under the relevant enactments, considering the gravity of the offense and the evidence presented.