1995 (1) TMI 215 - AT - Central Excise

Summary

Issues:
1. Seizure and confiscation of gold, ornaments, and currency from the residential premises.
2. Validity of inculpatory statement given by the appellant.
3. Allegations against the appellant's wife and penalties imposed on her.
4. Reduction of penalties imposed on the main appellant.

Analysis:

Issue 1: Seizure and confiscation of gold, ornaments, and currency
The appellants appealed against the impugned order of the Collector of Customs & Central Excise regarding the seizure of gold bars, ornaments, and currency from their residential premises. The appellants contested the legality of the seizure, claiming that the gold ornaments were family heirlooms covered by a statutory declaration. However, the authorities found substantial evidence linking the seized items to illegal activities, including an inculpatory statement by the main appellant admitting to purchasing contraband gold. The tribunal upheld the seizure and absolute confiscation of the gold, ornaments, and currency, deeming them to be derived from illegal activities.

Issue 2: Validity of inculpatory statement
The main appellant retracted his inculpatory statement, alleging coercion and threat by the authorities. The tribunal found the retraction to be belated and lacking in detail, thereby upholding the original statement as voluntary and true. The tribunal noted corroborating evidence, such as the recovery of gold biscuits, cut pieces of gold ornaments, and an iron cutter used for processing contraband gold, supporting the veracity of the initial statement. The tribunal rejected the retraction as an afterthought and upheld the charges against the main appellant.

Issue 3: Allegations against the appellant's wife
The wife of the main appellant was alleged to have obstructed authorities by not allowing access to the house during the search. However, the tribunal found no substantial evidence linking her to the illegal activities of her husband. Consequently, the penalties imposed on her under the Customs Act, 1962, and the Gold (Control) Act, 1968, were set aside based on the lack of evidence supporting her involvement in the offenses.

Issue 4: Reduction of penalties
Considering the upheld confiscation of gold, ornaments, and currency, the tribunal reduced the penalties imposed on the main appellant. The penalty under the Customs Act, 1962, was reduced to Rs. 25,000, and the penalty under the Gold (Control) Act, 1968, was reduced to Rs. 5,000. This reduction was deemed appropriate in the interest of justice, given the confirmed confiscation of the seized items. The appeals were disposed of accordingly.