1997 (12) TMI 354 - AT - Customs

Summary

Issues Involved:
1. Reasonable belief before seizure of gold biscuits.
2. Validity of the receipt produced as proof of legal purchase.
3. Voluntary nature and retraction of confessional statements.
4. Benefit of doubt regarding the smuggled nature of gold.
5. Denial of cross-examination.

Issue-wise Detailed Analysis:

1. Reasonable Belief Before Seizure of Gold Biscuits:
The tribunal examined whether there was a reasonable belief before the seizure of the gold biscuits. It was noted that there was definite information leading to the interception of the appellants at the railway station, where they were found concealing gold biscuits in their chappals. The gold was assayed and found to be of high purity. The appellants' statements were corroborated by their father-in-law, who confirmed their stay at his house on the relevant dates. The appellants failed to produce any documents proving the legal procurement of the gold. Consequently, the tribunal concluded that there was sufficient reasonable belief to hold that the gold biscuits were liable to confiscation.

2. Validity of the Receipt Produced as Proof of Legal Purchase:
The receipt purportedly evidencing the legal purchase of the gold was produced 1 1/2 years after the seizure, raising doubts about its authenticity. The tribunal questioned why the receipt was not produced immediately after the seizure or within a reasonable time. The delayed production of the receipt and the accompanying affidavit were deemed afterthoughts, and thus, the receipt could not be accepted as proof of the legal purchase of the gold biscuits.

3. Voluntary Nature and Retraction of Confessional Statements:
The tribunal assessed the voluntary nature of the appellants' confessional statements and their subsequent retraction. It was noted that no evidence was presented to prove coercion or marks of injury. The retraction of the statements was significantly delayed, undermining its credibility. Therefore, the tribunal held that the confessional statements were true and voluntary.

4. Benefit of Doubt Regarding the Smuggled Nature of Gold:
The tribunal considered whether the appellants should be given the benefit of the doubt regarding the smuggled nature of the gold. The confessional statements were read over and explained to the appellants, one of whom knew Hindi and the other could read Urdu. The statements were recorded in Hindi by someone else, but this did not render them doubtful. Given that one appellant could read Hindi and both were brothers, the tribunal found no reason to dismiss the statements.

5. Denial of Cross-Examination:
The tribunal addressed the issue of the denial of cross-examination of the panch witnesses and seizing officers. It was noted that the appellants had given confessional statements, which were not retracted immediately, and no evidence of duress was presented. The confessional statements were partially corroborated by Shri Abdul Khalik. The panchnama was recorded before panch witnesses, and at that time, the appellants did not contest the recovery of the gold biscuits or claim that the gold was purchased in India. Therefore, the tribunal found no merit in the argument regarding the denial of cross-examination.

Conclusion:
The tribunal held that the gold biscuits were liable to confiscation and sustained the confiscation. However, considering the facts and circumstances, including the absence of foreign markings on the gold pieces, the appellants were given an option to redeem the gold biscuits upon payment of a fine of Rs. 1,50,000/-. The tribunal did not interfere with the order of imposition of penalty or its quantum. The impugned order was modified to the extent stated, and the appeals were disposed of accordingly.