2009 (11) TMI 282 - AT - Customs

Penalty- Possession of goods restricted for import- The Appellant was taking delivery from Railways and transporting in tempos CFC gas cylinders of foreign origin. He was not having any documents showing licit nature of procurement of the said CFC gas cylinders of foreign origin. He claimed that Shri Uttam Majumdar of Calcutta (whose address he was not in a position to furnish) who was dealing with him in ball bearings business arranged for the cylinders and that the said cylinders were meant to be delivered to the persons whose address was to be furnished by the said Shri Uttam Mazumdar. The original Authority apart of confiscating the refrigerant gas cylinders valued at Rs. 3,71,000/- on the ground that they are restricted for import, imposed penalty of Rs. 75,000/- on the Appellant. Commissioner (Appeals) has upheld the penalty imposed on the Appellant. Held that- it has been rightly held that the Appellant have taken possession and was found transporting CFC cylinders which were restricted for import and, therefore, penalty on him is warranted. However, considering the value of CFC cylinders involved, I reduce the penalty from Rs. 75,000/- to Rs. 50,000/-.

Summary

Issues:
1. Procurement and transportation of CFC gas cylinders of foreign origin without proper documentation.
2. Confiscation of the cylinders and imposition of penalty by the Customs Authorities.
3. Appeal against the penalty imposed on the Appellant.

Analysis:
1. The Appellant was involved in taking delivery and transporting CFC gas cylinders of foreign origin without possessing documents proving the legitimate procurement of these cylinders. The Appellant claimed that another individual was arranging the delivery and that the cylinders were meant for specific recipients, but failed to provide essential details such as addresses. The Customs Authorities confiscated the cylinders valued at Rs. 3,71,000 and imposed a penalty of Rs. 75,000, which was upheld by the Commissioner (Appeals).

2. The Appellant's advocate argued that there was no concrete evidence establishing the foreign origin of the CFC gas cylinders. The Appellant asserted that he was merely assisting a friend in the transaction and was not claiming ownership of the cylinders. On the other hand, the Respondent reiterated that markings on the cylinders clearly indicated their foreign origin, supporting the penalty imposed by the Commissioner (Appeals).

3. After considering the submissions and evidence presented by both sides, the Tribunal found that the Appellant failed to provide crucial information regarding the source and intended recipients of the cylinders. Despite the Appellant's doubts about the foreign origin of the cylinders, the inscriptions and a witness statement confirmed their foreign nature. Consequently, the Tribunal upheld the penalty but reduced it from Rs. 75,000 to Rs. 50,000 considering the value of the cylinders involved. The appeal was partially allowed based on this decision.

This judgment highlights the importance of proper documentation and transparency in the procurement and transportation of goods, especially when dealing with restricted or foreign-origin items. The Tribunal's decision underscores the need for individuals involved in such transactions to provide complete and verifiable information to avoid penalties and legal consequences.