1991 (1) TMI 270 - AT - Customs

Issues Involved:
1. Legality of the seizure and confiscation of snake skins.
2. Imposition of penalty under Section 114 of the Customs Act, 1962.
3. Alleged violation of principles of natural justice.
4. Admission of additional evidence.
5. Comparison of treatment between the appellant and another involved party (S.K. Roy).
6. Consideration of mitigating factors in penalty reduction.

Detailed Analysis:

1. Legality of the Seizure and Confiscation of Snake Skins:
The case involved the seizure of 2524 pieces of bark tanned snake skins, valued at approximately Rs. 1,26,200/-, which were declared as "Cotton Ring Samples" for export. The snake skins were banned items under Schedule 1, Part A of the Export Policy 1981-82. The Customs authorities intercepted the parcels based on intelligence reports, and the consignor, M/s. Globe Trading Company, was found to be fictitious. The appellant was accused of abetting the smuggling of these snake skins.

2. Imposition of Penalty under Section 114 of the Customs Act, 1962:
The appellant was penalized Rs. 5,000/- under Section 114 of the Customs Act, 1962, for his alleged involvement in the smuggling operation. The adjudicating authority concluded that the appellant had taken bribes and actively assisted in the smuggling of the snake skins. The penalty was imposed after considering the statements of various individuals and the evidence collected during the investigation.

3. Alleged Violation of Principles of Natural Justice:
The appellant contended that there was a violation of natural justice as he was not provided with copies of certain documents and statements before the adjudication order. However, the tribunal found that the gist of these statements was incorporated in the show cause notice, and the appellant was given an opportunity to inspect these documents. The tribunal concluded that there was no violation of natural justice as the appellant had not shown how he was prejudiced by the non-supply of documents.

4. Admission of Additional Evidence:
The appellant sought to admit additional documents, including a certificate of exemplary courage, an order from the Collector of Customs on the administrative side, and statements from disciplinary proceedings. The tribunal admitted the certificates and the order from the disciplinary authority but did not admit the statements from the disciplinary proceedings, as they were not relevant to the adjudication proceedings.

5. Comparison of Treatment Between the Appellant and Another Involved Party (S.K. Roy):
The appellant argued that he was treated unfairly compared to S.K. Roy, who was also allegedly involved but not proceeded against. The tribunal distinguished this case from the Supreme Court decision in Sengara Singh v. State of Punjab by noting that the adjudicating authority had penalized several other individuals similarly situated to the appellant. The tribunal found that the appellant's involvement was of a higher degree, as he was considered the main brain in the smuggling operation.

6. Consideration of Mitigating Factors in Penalty Reduction:
The tribunal acknowledged the appellant's hardships, including having a handicapped child and the severe penalties already imposed by the disciplinary authority. Considering these factors, the tribunal reduced the penalty from Rs. 5,000/- to Rs. 1,000/-. The appeal was otherwise dismissed.

Conclusion:
The tribunal upheld the seizure and confiscation of the snake skins and the imposition of the penalty under Section 114 of the Customs Act, 1962. The tribunal found no violation of natural justice and admitted certain additional evidence. The appellant's argument of unequal treatment compared to S.K. Roy was rejected, but the penalty was reduced in consideration of the appellant's personal hardships.

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