1991 (4) TMI 266 - AT - Customs

Issues Involved:
1. Validity of the show cause notice.
2. Consideration of Sections 108, 124, and 139 of the Customs Act.
3. Recording of statements by a non-gazetted officer.
4. Use of statements at the adjudication stage.
5. Validity of retracted statements.
6. Alleged suppression and misinterpretation by the Tribunal.
7. Prosecution and penalty on Smt. Radha Devi Kothari.
8. Proof of foreign origin of seized stones.
9. Failure to declare stones upon departure and return.

Detailed Analysis:

1. Validity of the Show Cause Notice:
The Tribunal addressed the validity of the show cause notice in para 6 of its order, stating that the notice was not vague and contained all necessary ingredients under Section 112 of the Customs Act, 1962. The applicants were given an opportunity to defend the case. Therefore, no question of law arose regarding the validity of the show cause notice.

2. Consideration of Sections 108, 124, and 139 of the Customs Act:
The Tribunal considered the voluntary nature of the statements under Section 108 and discussed the confiscation of goods. The applicants did not convincingly argue how the Tribunal misinterpreted these sections. Hence, no question of law arose from this issue.

3. Recording of Statements by a Non-Gazetted Officer:
The applicants contended that the statements were recorded by a non-gazetted officer under Section 108, who was not the enquiring officer. However, this ground was not raised in the appeal memorandum before the Central Government or the Tribunal. Therefore, no question of law arose from this issue.

4. Use of Statements at the Adjudication Stage:
The applicants argued that the confessional statement dated 8-9-1980 could not be used at the adjudication stage due to the bar under Section 139 of the Customs Act. This ground was not raised in the appeal or canvassed before the Tribunal. Therefore, no question of law arose from this issue.

5. Validity of Retracted Statements:
The Tribunal discussed the retraction of the statement dated 8-9-1980 in paras 4 and 5 of its order. It considered the Supreme Court decision in AIR 1970 SC 940 and concluded that the statement was voluntary, as no details of coercion were provided. Therefore, no question of law arose regarding the validity of the retracted statements.

6. Alleged Suppression and Misinterpretation by the Tribunal:
The applicants made a vague claim of suppression and misinterpretation without specifying the suppressed materials or misinterpreted facts. The Tribunal considered all cited decisions, including those from the Supreme Court and High Courts, and thus, no question of law arose from this issue.

7. Prosecution and Penalty on Smt. Radha Devi Kothari:
The applicants argued that the refusal to sanction prosecution of Smt. Radha Devi Kothari and her examination as a witness in the criminal court were relevant. The Tribunal held that these facts pertained to criminal prosecution and were irrelevant to the adjudication proceedings. Therefore, no question of law arose from this issue.

8. Proof of Foreign Origin of Seized Stones:
The applicants claimed there was no proof that the seized stones were of foreign origin. The Tribunal discussed this point and concluded that the question did not raise any specific point of law for referral to the High Court.

9. Failure to Declare Stones Upon Departure and Return:
The applicants argued that their failure to declare the stones did not constitute an offense. The Tribunal held that no further enquiry was needed as the stones were seized from the applicants' possession, and they had stated that the stones were purchased from Thailand. Therefore, no question of law arose from this issue.

Conclusion:
The Reference Application was rejected as none of the questions raised by the applicants constituted a valid point of law for referral to the High Court. The Tribunal's order was upheld, and no further investigation or enquiry was deemed necessary.

← Previous Next →