1992 (10) TMI 211 - AT - Customs

Summary

Issues Involved:
1. Legality of the seizure of goods from the garbage van and the residence.
2. Admissibility and voluntariness of the statements made by the appellants.
3. Justification for the penalties imposed on the appellants.
4. Validity of the confiscation of goods from the residence of Shri S.K. Sharma.

Detailed Analysis:

1. Legality of the Seizure of Goods:
The Customs Officers acted on information and kept surveillance at Delhi Airport, resulting in the discovery of 624 wristwatches and 40 metal watch chains of foreign origin in a garbage van. The goods were confiscated under Sections 111(d), (g), and (h) of the Customs Act, 1962. The Tribunal found no doubt that the goods were smuggled, considering their recovery from a garbage van associated with an incoming British Airways flight. The follow-up search at Shri S.K. Sharma's residence led to the recovery of additional foreign-origin goods and incriminating documents.

2. Admissibility and Voluntariness of Statements:
The appellants argued that their statements were taken under duress and retracted them in their bail applications. However, the Tribunal noted that the retractions were general and vague, made only in bail applications and not before Customs authorities. Statements of Chander Singh and Shri S.K. Sharma were in their own handwriting, and statements of other appellants were recorded by Chander Singh and accepted as true. The Tribunal found these statements credible and corroborated by independent witnesses. The Tribunal dismissed the argument that no written summons were issued, citing relevant case law that oral summons do not invalidate the statements.

3. Justification for Penalties:
The penalties imposed by the adjudicating authority were Rs. 20,000/- on Shri S.K. Sharma and Rs. 5000/- each on the other appellants. The Tribunal considered the overall facts, including the death of two appellants and the poor financial condition of the surviving appellants, and reduced the penalties to Rs. 2000/- for Shri S.K. Sharma and Rs. 500/- each for the other appellants.

4. Validity of Confiscation of Goods from Residence:
Shri S.K. Sharma contended that the confiscated camera and stereo were bona fide gifts from Mrs. Rosalie Peterson. The Tribunal found no merit in this plea, as the affidavit from Mrs. Peterson was produced late and did not disclose whether duties were paid. Similarly, the goods alleged to belong to Karim from Hong Kong were not convincingly supported by timely evidence. The Tribunal upheld the adjudicating authority's decision to confiscate these goods.

Conclusion:
The Tribunal upheld the confiscation of the smuggled goods and the penalties imposed, with modifications in the quantum of penalties. The statements of the appellants were deemed credible, and the retractions were not given significant weight. The confiscation of goods from Shri S.K. Sharma's residence was also upheld, dismissing the claims of bona fide gifts and ownership by a third party.