2018 (4) TMI 1348 - AT - Customs

Smuggling of televisions of sizes 32 and above - illegal import of Vitamin C - illegal attempt to export contrabaned in the form of Red Sanders Wood - penalties - Held that - the allegations made against the appellants are not borne by the evidence on record. Since appellant s name does not figure in any of the fraudulent imports identified by DRI, we find no justification for the penalties imposed on the above four persons - penalties set aside. Penalty u/s 112/114AA on CHA - it was alleged that they facilitated custom clearance of imports made by Shri BK Goyal in the name of different importers - Held that - the allegation is not specific to any Bill of Entry identified against the appellant. In the absence of specific allegation, the charge of facilitation of illegal import cannot be sustained against the appellants - penalties set aside. Penalties on M/s Shriniwasa Roadways P Ltd, Sh Nagendra Mishra, Shri Shriniwas Bansal - Smuggling - illegal import - Held that - the appellants have admitted to the transportation of 43 containers from Calcutta to Delhi through CONCOR. It further stands admitted that they have booked the consignments showing their name as consignor on behalf of fictitious firms - the appellants have to be held responsible for facilitating the illegal import carried-out by Shri BK Goyal and Shri Rahul Goyal - penalties upheld. Penalty on Shri PK Ralli - Held that - the active role played by Shri PK Ralli in the scheme of illegal import under the direction and scheme of master-minded Shri BK Gpyal stands established - penalty upheld. Appeal allowed in part.

Issues:
1. Allegations of smuggling and illegal import of goods.
2. Confiscation and penalties imposed on various parties involved.
3. Verification of KYC documents and facilitation of illegal imports.
4. Role of Customs Brokers in facilitating clearance of goods.
5. Transportation of smuggled goods through CONCOR.
6. Involvement of individuals in the smuggling racket.
7. Imposition of penalties based on statements of co-accused.

Analysis:

1. The judgment involved multiple appeals challenging an Order-in-Original related to the illegal import of Sony televisions and other goods. The Directorate of Revenue Intelligence (DRI) conducted searches at various premises linked to the smuggling activities, leading to the seizure of prohibited goods like Red Sanders Wood and unregistered televisions above 32". The investigation also revealed attempts to smuggle goods through Container Corporation of India Ltd (CONCOR).

2. The impugned order resulted in the confiscation of contraband goods, penalties on involved parties, and the payment of customs duty on certain electronic goods. The penalties were imposed on firms and individuals found to be part of the smuggling activities, including those who facilitated the clearance of goods under false pretenses.

3. The appeals by certain appellants focused on the penalties imposed on them as Customs Brokers for allegedly facilitating illegal imports. The Tribunal found that the charges were not substantiated by evidence, and penalties were set aside due to lack of involvement in the fraudulent imports identified by DRI.

4. Another appeal addressed the role of a Customs Broker in facilitating the clearance of goods for the main accused. The Tribunal noted the absence of specific allegations and supporting documents, leading to the penalties being overturned as the charges could not be sustained without concrete evidence.

5. A separate appeal involved a logistics company accused of transporting smuggled goods. The Tribunal upheld the penalties imposed on the appellants as they admitted to facilitating the illegal import of goods from Calcutta to Delhi, further strengthening the case against them.

6. In a specific appeal, an individual was alleged to have actively participated in the smuggling activities by introducing fictitious firms and receiving monetary consideration for facilitating illegal imports. The Tribunal found the evidence against the individual compelling and upheld the penalty imposed based on their significant role in the smuggling scheme.

7. Overall, the Tribunal disposed of all appeals, considering the evidence, statements of involved parties, and the findings of the adjudicating authority. The penalties were either sustained or set aside based on the level of involvement and evidence against each appellant, ensuring accountability for their roles in the smuggling racket.

This detailed analysis of the judgment highlights the various issues addressed, the arguments presented by the parties, and the Tribunal's findings on each issue, leading to the final disposition of the appeals.

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