1990 (12) TMI 250 - AT - Customs

Summary

Issues:
1. Alleged illegal export of foreign exchange without declaration.
2. Alleged illicit export of silver.
3. Admissibility of evidence from Hongkong Customs.
4. Imposition of penalty under the Customs Act.

Analysis:
1. The case involves the search and interrogation of an individual by the Directorate of Revenue Intelligence regarding his visits to Hongkong and the alleged illegal export of foreign exchange without declaration. The individual admitted to carrying Hongkong dollars and U.S. dollars without making a declaration to Customs officers, leading to a penalty under Section 114 of the Customs Act.

2. The Officers of Directorate of Revenue Intelligence suspected the illicit export of silver based on information received from Hongkong Customs about another individual's declaration of silver upon arrival. The individual denied exporting silver but admitted to the illegal export of foreign exchange. The adjudicating authority imposed a penalty for the foreign exchange violation but exonerated the individual from the silver export charge.

3. The case raised issues regarding the admissibility of evidence from Hongkong Customs, specifically a letter dated 14-5-1980. The individual argued that the letter was not a statement before a Gazetted Officer and thus not admissible under Sections 138B and 139 of the Customs Act. The Tribunal, however, found the evidence relevant and held the individual liable for illicitly exporting silver based on this evidence.

4. The Tribunal, upon appeal, upheld the penalty for illicit silver export, noting the possibility of the individual carrying the silver without paying freight charges. The applicant sought a reference to the High Court on points of law, including the admissibility of the evidence from Hongkong Customs and the Tribunal's authority to impose penalties. The Tribunal accepted the reference application for determination by the High Court.

Conclusion:
The judgment revolves around the individual's involvement in the illegal export of foreign exchange and the illicit export of silver, with a focus on the admissibility of evidence from Hongkong Customs. The Tribunal's decision to hold the individual liable for silver export and impose a penalty under the Customs Act underscores the significance of proper declaration and compliance with customs regulations. The reference to the High Court seeks clarification on legal points arising from the case, indicating the complexity and legal intricacies involved in customs enforcement and penalties.