2017 (11) TMI 704 - AT - Customs

Smuggling - Cigarettes of Foreign origin - confiscation - penalty - Held that - I did not come across any evidence brought forward by Revenue to establish that the appellant had knowledge that the goods booked through their transport agency or carrier agency were liable for confiscation - penalties set aside - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against Order-in-Appeal No.381-382-CUS/APPLALLD/LKO/2016 dated 13/05/2016 passed by Commissioner of Customs, Central Excise & Service Tax (Appeals), Lucknow.

Detailed Analysis:

1. Facts of the Case:
- Officers seized imported cigarettes from Varanasi Railway Station.
- Goods booked as "Art Silk Saree" by four individuals in Delhi.
- Show cause notice issued proposing confiscation and penalty.
- Appellants' role limited to booking packages for transportation.
- Original authority imposed penalty under Section 112(b) of Customs Act, 1962.
- Appeal filed before Commissioner (Appeals) against Order-in-Original.

2. Grounds of Appeal:
- Appellants claimed they were only providing courier services.
- Appellants had no knowledge of the contraband nature of the goods.
- Goods were booked based on declarations from the consignor.
- Lack of evidence establishing unauthorized route of goods.

3. Arguments of the Parties:
- Appellants' counsel argued that they were unaware of the nature of the seized goods.
- Revenue argued that those dealing with confiscated goods are liable for penalties.

4. Judgment:
- Tribunal found no evidence proving appellants' knowledge of the goods' confiscation liability.
- Penalties imposed on the appellants were set aside.
- Order-in-Appeal dated 13.05.2016 was modified, and both appeals were allowed.
- Appellants entitled to consequential relief as per law.

This judgment highlights the importance of establishing knowledge of confiscated goods' nature for imposing penalties under the Customs Act, 1962. The Tribunal emphasized the lack of evidence linking the appellants to the goods' contraband status, leading to the penalties being overturned. The decision underscores the need for clear evidence to hold parties liable for penalties in customs cases, ensuring fairness and adherence to legal principles.