1999 (5) TMI 143 - AT - Customs

Summary

Issues:
Penalty imposed on the appellants for involvement in smuggling activities without a valid import license.

Analysis:

1. Facts and Seizure: The case involved the seizure of gunny bundles containing smuggled goods, specifically American blend cigarettes and torches of foreign origin, at Old Delhi Railway Station. Three appellants were apprehended in connection with the seized goods, and their statements revealed their involvement in the smuggling activities.

2. Legal Violations: The Commissioner found that the imported goods lacked a valid import license as required by the Import and Export Policy, rendering them liable for absolute confiscation. Despite the initial burden on the Department to establish an offense, the appellants' admissions of smuggling activities confirmed the offense. The appellants were found marketing the smuggled goods for profit, leading to the absolute confiscation of the goods and imposition of penalties.

3. Appellants' Defense: The appellants claimed they were wrongly implicated, and their statements were coerced. They argued that the lack of a direct link between them and the seized goods invalidated the penalties. However, the Department reiterated that the appellants' statements corroborated their involvement in the smuggling activities.

4. Adjudication and Penalties: The Tribunal considered the appellants' arguments regarding the voluntariness of their statements and the absence of cross-examination of witnesses. Despite these claims, the Tribunal found the appellants' presence at the seizure site and their detailed, consistent statements as strong evidence of their complicity in the smuggling operation.

5. Judgment: The Tribunal upheld the penalties but reduced them from Rs. 50,000 to Rs. 10,000 each for the appellants. Considering their role as mere commission receivers and not the primary smugglers, the Tribunal found this penalty modification appropriate to serve the ends of justice. Ultimately, the Appeals were rejected with the revised penalty amount for each appellant set at Rs. 10,000.