2013 (12) TMI 178 - AT - Customs

Clandestine removal of goods - Unauthorized removal of goods from Airport - Attempt to smuggle goods - Appellants role in this act - Held that - It is not in dispute that on 13.6.2003, two consignments valued over Rs.44 lakhs were successfully and clandestinely removed from the airport by Y. Raju who was employed in the airport as contingent. The appellant s proximity with the said Y. Raju stands confirmed by the appellant inasmuch as he was found attending to work at his residence as well. The initial statements of Shri Abdul Kader and Y. Raju implicate the appellant in the smuggling.activities, Further, the appellant was found to have used the cell phone in the name of a friend inasmuch as, from the said phone, calls were made to his residence and calls were received from his residence. The reasons for disowning the use of the phone by the appellant are not convincing - no prima facie case in favour of the appellant has been made out for full waiver of the penalty sustained against him. Considering the financial hardship to appellant, he is directed to make a partial deposit - Stay granted partly.

Summary

Issues:
Waiver of pre-deposit of penalty, Abetment of smuggling, Financial hardship plea

Waiver of Pre-deposit of Penalty:
The appellant sought waiver of pre-deposit of penalty of Rs.1 lakh sustained by Commissioner (Appeals) after reducing the original penalty of Rs.3 lakh imposed by the authority. The case stemmed from smuggling activities at Bangalore International Airport involving the appellant's acquaintance with individuals engaged in smuggling. The appellant's proximity to the main accused, confirmed by statements and call records, indicated his involvement. Despite the appellant's denial and financial hardship plea, the Tribunal found no prima facie case for full waiver but directed a deposit of Rs.30,000 within six weeks, with the balance amount waived subject to compliance.

Abetment of Smuggling:
The appellant, a former airport inspector, was implicated in abetting smuggling activities through his association with key individuals involved in the smuggling ring. Statements from witnesses like Abdul Kader, Y. Raju, and Mohammad Kaseem pointed to the appellant's involvement, supported by call records showing communication links. The Commissioner (Appeals) confirmed the abetment findings but reduced the penalty imposed. The appellant's defense of lack of evidence and absence of cross-examination opportunities for certain witnesses was countered by the Deputy Commissioner (AR) citing the consistency of statements and unchallenged evidence of seized goods.

Financial Hardship Plea:
The appellant, facing financial hardship after being removed from service, pleaded for waiver of pre-deposit due to pending disciplinary proceedings and unemployment. Despite acknowledging the financial difficulties, the Tribunal did not find sufficient grounds for a full waiver but considered the plea, directing a partial deposit and granting a stay on recovery of the balance penalty amount pending appeal disposal. The Tribunal balanced the appellant's circumstances with the gravity of the allegations to determine the appropriate course of action.