1992 (11) TMI 212 - AT - Customs

Summary

Issues Involved:
1. Validity of the seizure and mahazar documentation.
2. Voluntariness and admissibility of inculpatory statements.
3. Allegations of coercion and wrongful confinement.
4. Applicability of penalties under Sections 112 and 114 of the Customs Act, 1962.

Issue-Wise Detailed Analysis:

1. Validity of the Seizure and Mahazar Documentation:

The appeals were directed against the orders of the Additional Collector of Customs, Visakhapatnam, which levied penalties under Sections 112 and 114 of the Customs Act, 1962. The proceedings were initiated in connection with the seizure of electronics and other goods from two wing tanks in the ship m.v. Samrat Ashok on or about 2-7-1986. The appellants contended that no separate mahazar was prepared for the recovery of the goods from the said tanks, and the mahazar was vague. However, the Tribunal found that the mahazar and the list of inventory clearly bore out the seizure and the place of seizure, and the testimony of the seizing officers was entitled to weight and acceptance. The mahazar dated 1-7-1986 detailed the search and recovery of 195 and 386 packages from the wing tanks, containing various contraband goods.

2. Voluntariness and Admissibility of Inculpatory Statements:

The appellants argued that their inculpatory statements recorded under Section 107 of the Customs Act were not voluntary and were obtained under coercion and threat. They pointed out that their initial statements under Section 108 were exculpatory, and there was no need for subsequent inculpatory statements. The Tribunal, however, found that the inculpatory statements were voluntary and merited acceptance. The cross-examination of the officers who recorded the statements did not substantiate the plea of coercion or undue influence. The Tribunal also noted that the Shipping Corporation of India did not complain about wrongful confinement of their employees, which further weakened the appellants' claims.

3. Allegations of Coercion and Wrongful Confinement:

The appellants alleged that their inculpatory statements were obtained through coercion, threat, and wrongful confinement. They argued that they were kept in the Seafarers Hostel and later taken to the Old Customs House under duress. However, the Tribunal found no evidence of wrongful confinement or coercion. The cross-examination of the officers did not reveal any substantial proof of the appellants being kept under illegal custody or being coerced into giving statements. The Tribunal also noted that the crew members of a ship staying in the Seafarers Hostel was a natural occurrence, and no complaint was made by the Shipping Corporation of India regarding wrongful confinement.

4. Applicability of Penalties Under Sections 112 and 114 of the Customs Act, 1962:

The Tribunal found that the materials available on record were not adequate to fasten the appellants with penal consequences under Section 114 of the Customs Act. There was a lack of evidence that the goods were attempted to be improperly exported, falling within the mischief of Section 113 of the Act. Therefore, the Tribunal exonerated the appellants under Section 114 by giving them the benefit of doubt and set aside the penalty under this section.

In respect of the penalty under Section 112, the Tribunal held that the charge had been brought home against the appellants. The inculpatory statements and the evidence on record were sufficient to confirm the findings of the adjudicating authority. However, taking into consideration the facts and circumstances, including the appellants' loss of jobs, the Tribunal reduced the penalty to 15% of the c.i.f. value in each case, except for appellant M. Satyam, whose penalty was reduced to Rs. 100. Except for these modifications, the appeals were otherwise dismissed.

Conclusion:

The Tribunal upheld the seizure and the validity of the mahazar documentation, found the inculpatory statements to be voluntary and admissible, dismissed the allegations of coercion and wrongful confinement, exonerated the appellants under Section 114, and confirmed the penalties under Section 112 with modifications.