1995 (11) TMI 180 - AT - Customs

Summary

Issues involved: Confiscation of gold biscuits, Indian currency, and Minolta Camera, imposition of penalties under Customs Act and Gold (Control) Act, reliance on statement of co-noticee, non-appearance in response to summons, burden of proof under Section 121 of Customs Act.

Confiscation of Gold Biscuits and Indian Currency:
The Collector of Customs, New Delhi had confiscated 12 gold biscuits of foreign origin and Indian currency amounting to Rs. 87,000 from the appellant's residential premises. The case was primarily based on the statement of Shri N.C. Jain, a co-noticee, who claimed ownership of the gold biscuits. However, the appellant did not incriminate himself in any statement. The Tribunal emphasized that mere reliance on a co-noticee's statement without independent corroboration is insufficient to establish guilt in smuggling activities. Furthermore, the burden of proof under Section 121 of the Customs Act regarding the seized Indian currency was not discharged by the department, as the appellant explained it was his own money and not proceeds from smuggled gold. Consequently, the Tribunal set aside the confiscation order and directed the release of the Indian currency and Minolta Camera to the appellant, while also overturning the imposed penalty.

Imposition of Penalties:
The appellant had been subjected to a personal penalty of Rs. 50,000 under the Customs Act and Rs. 25,000 under the Gold (Control) Act. However, the Tribunal found that the penalties were unjustified due to the lack of substantial evidence linking the appellant to the smuggling activities. Notably, the non-appearance of the appellant in response to DRI summons was deemed an inadequate criterion to establish guilt. Since the department failed to meet the burden of proof and the case was solely based on the statement of a co-noticee, the Tribunal ruled in favor of the appellant, setting aside the penalties imposed on him.

Decision and Relief Granted:
After thorough consideration, the Tribunal allowed the appeals, quashed the impugned order, and directed the release of the confiscated Indian currency and Minolta Camera to the appellant. The penalties imposed on the appellant under the Customs Act and Gold (Control) Act were also set aside. Consequential relief, if applicable, was granted to the appellant in accordance with the Tribunal's decision.