2017 (11) TMI 619 - AT - Customs

Smuggling - Cigarettes - fake and forged documents - forged Bills of Entry and gate passes - confiscation - penalties. Held that - Regarding the sale of cigarettes, it may be mentioned that cigarette is a perishable items which was rightly sold by the Department as there was no claimant for the same. It is claimed that the duty was paid on cigarettes, but in the impugned order it is mentioned that duty was never paid. Further, the Appellant claimed that he was not the importer. It appears that there was a syndicate of smugglers where the Departmental persons were also involved. It is surprising that eight containers have been removed from the Tukhalabad Dry Port on forged documents without paying any duty, even duty payment challan was forged. This is a glaring example of smuggling. Smuggling is a cancer impacting national economy for which all the Appellants were making their contribution directly or indirectly, as briefly discussed above. The forged ID was used, false documents were prepared. Confiscation and penalties upheld - In fact, the Department has taken a lenient view by imposing lesser penalty/punishment. Unfortunately, the Tribunal has no power to enhance the penalty/punishment. So, we uphold the impugned order in toto for the reasons mentioned therein. Appeal dismissed - decided against appellant.

Summary

Issues Involved:
1. Forged Documents and Smuggling
2. Role of Various Appellants
3. Penalties Imposed
4. Departmental Appeals

Detailed Analysis of Judgment:

1. Forged Documents and Smuggling:
The case revolves around the clearance of eight containers from ICD, Tughlakabad, in May 2012 using forged Bills of Entry and gate passes. The containers, which contained cigarettes, R-22 gas, and air conditioners, were cleared without proper documents and without paying any duty. The signatures and stamps of concerned officers were forged, confirmed by the Central Forensic Science Laboratory (CFSL), Chandigarh. The modus operandi involved using a stamp “DUPLICATE B/E DETACHED” on the Manual Customs Gate Passes, and the entire process was executed without the knowledge of the concerned officers.

2. Role of Various Appellants:
- Rohit Sakhuja: The cross-appeals concerning Rohit Sakhuja highlighted that his name did not appear on the Bills of Lading, and the TR-6 Challans showing payments were forged. It was argued that the gate passes were issued by the CHA staff, and Sakhuja had no involvement. However, the goods were recovered from various godowns linked to him, and he was implicated in the illegal import and clearance of goods. The penalty imposed on him was challenged but upheld.

- Ajit Singh Chadha: He was identified as the mastermind along with Rohit Sakhuja. Despite not being represented, the record showed his involvement in the illegal import and clearance of goods. Penalties were imposed on him under Sections 112, 114A, and 114AA of the Customs Act, 1962.

- Kamal Virmani: Penalty of ?30 lacs was imposed on him for his role as the proprietor of M/s Gaurav Enterprises. He was found to have knowledge about the import of R-22 gas by Ajit Singh Chadha, but he claimed no involvement in the illegal import of air conditioners.

- Naresh Kumar Sharma: As the proprietor of M/s Star Aircon, a penalty of ?30 lacs was imposed. He claimed to be merely an employee acting under the guidance of Rohit Sakhuja and argued that there was no case against M/s Star Aircon.

- Vijay Kumar, Dilip Singh Jain, Satish Kumar Chadha: Penalties of ?30 lacs each were imposed for purchasing R-22 gas cylinders without documents. They claimed to be unaware of the imported nature of the goods.

- Ajay Kaushal: A petty shopkeeper from whom 12 ACs were recovered without documents. He purchased the ACs from Kamal Virmani and argued that the penalty of ?30 lacs was excessive.

- Sandeep Kumar, Pradeep Kumar, Bharat Vidhuri: Penalties were imposed for their involvement in the clearance of goods on forged documents. Sandeep Kumar was found to be hand-in-glove with the main accused and admitted to facilitating the clearance of goods.

3. Penalties Imposed:
The adjudicating authority imposed various penalties under Sections 112, 114A, and 114AA of the Customs Act, 1962. The penalties were challenged by the appellants on various grounds, including lack of involvement, procedural lapses, and excessive amounts. However, the Tribunal upheld the penalties, stating that the appellants were directly or indirectly contributing to smuggling, which is detrimental to the national economy.

4. Departmental Appeals:
The Department filed appeals against the adjudicating authority's decision to drop penalties against certain individuals, including R.K. Mahapatra, S.K. Dubey, S.K. Singh, and K.Line Singapore Pte. Ltd. The Tribunal found no sufficient evidence against these individuals and upheld the decision to drop penalties, providing them the benefit of doubt.

Conclusion:
The Tribunal upheld the impugned order in its entirety, confirming the confiscation of goods and the imposition of penalties. The Departmental appeals were dismissed due to a lack of sufficient evidence against the concerned individuals. The judgment emphasized the serious nature of smuggling and the involvement of various parties in the illegal clearance of goods.