1997 (12) TMI 212 - AT - Customs

Seizure - Evidence - Confessional statement - Confiscation -Redemption fine - Confiscation of vehicle - Confiscation of currency- Penalty

Summary

Issues Involved:
1. Applicability of Section 123 of the Customs Act.
2. Validity of the confiscation of silver slabs.
3. Validity of the confiscation of the Maruthi Car.
4. Validity of the confiscation of Indian Currency.
5. Appropriateness of penalties imposed on the appellants.

Detailed Analysis:

1. Applicability of Section 123 of the Customs Act:
The Tribunal examined whether Section 123 of the Customs Act could be invoked in this case. It was noted that 49 bars of silver bullion weighing 215 kgs were found concealed in a car. The appellants failed to produce any documents for the licit transport or possession of the silver. A goldsmith tested the silver and found the purity to be 0.999%. The appellants' statements indicated that the silver was prepared from foreign origin silver. Citing the Supreme Court decision in Indru Ramchand (1992), the Tribunal held that there was sufficient material for the officers to entertain a reasonable belief that the silver was smuggled, thus invoking Section 123. The burden was on the appellants to prove that the silver was not smuggled.

2. Validity of the Confiscation of Silver Slabs:
The appellants argued that their statements were obtained under coercion and retracted, and thus should not be relied upon. However, the Tribunal referred to the Supreme Court ruling (1992) which stated that retracted statements are not necessarily involuntary. The Tribunal found no evidence of coercion and deemed the statements voluntary and true. The appellants' claim that the silver's purity was less than 0.999% was dismissed as their statements confirmed it was melted foreign silver. Consequently, the confiscation of silver valuing Rs. 15 lakhs was upheld as legal and proper.

3. Validity of the Confiscation of the Maruthi Car:
The Tribunal noted that under Section 115(2) of the Customs Act, a conveyance used for smuggling is liable for confiscation but should be given an option for redemption. The adjudicating authority failed to provide this option. Considering the facts, the Tribunal ordered a redemption fine of Rs. 25,000/- for the Maruthi Car, allowing it to be redeemed.

4. Validity of the Confiscation of Indian Currency:
The statement of Shri Raju Gundesh indicated that Rs. 40,000/- was the sale proceeds of smuggled silver. The Tribunal referenced Supreme Court decisions (1996) affirming the evidentiary value of statements obtained under Section 108 of the Customs Act. Thus, the confiscation of the currency was upheld.

5. Appropriateness of Penalties Imposed on the Appellants:
- Shri Raju Gundesh: The penalty of Rs. 1,00,000/- was confirmed as he was the main person connected with the offense.
- Shri Bhagwan Ramchandra Rawal: The penalty was reduced from Rs. 5,000/- to Rs. 2,000/- considering his role as a driver and the circumstances.
- Shri Vinod Jagannath Agarwal: The penalty was reduced from Rs. 3,000/- to Rs. 1,500/- as he was a worker under Shri Raju Gundesh.
- Shri Dhanraj Kapurji Gundesh: The penalty was reduced from Rs. 50,000/- to Rs. 35,000/- due to his involvement in receiving and melting the foreign silver.
- Shri Manmohan Singh Rana, Shri Rajendra Prasad Bansal, and Shri Pradeep Kumar: Penalties were set aside as their actions post-detection did not constitute abetment under Section 112 of the Customs Act.
- Shri Vikas Baburao Patil: The penalty of Rs. 10,000/- was confirmed due to his involvement in melting the silver and providing his car for transport.

Conclusion:
The appeals were disposed of with the Tribunal upholding the confiscation of silver and currency, modifying the confiscation of the car to allow redemption, and adjusting the penalties based on the involvement and circumstances of each appellant.