2024 (3) TMI 245 - AT - Customs

Smuggling of Cattle Heads - confiscation - penalties imposed - corroborative evidence - fraudulently used the Challan belonging to the some other party - HELD THAT - Neither the drivers nor Md. Mustafa Khan or any other person has stated that ultimately the Cattles were to be smuggled to Bangladesh. Even the purported buyer Shri K. P. Lalmunawna has told that he has proper license to deal with livestock and has been having regular business transaction with Md. Mustafa Khan. Therefore, it is not known as to how the Revenue would have directly come to a conclusion that the Cattle Heads were being smuggled to Bangladesh with no proper corroborative evidence whatsoever. Therefore, I find that the impugned orders are not sustainable in respect of the confiscation Order for the seized Cattles. Hence, I set aside the Confiscation Order in respect of the confiscated Cattle Heads. So far as the penalties imposed on Md. Mustafa Khan is concerned, I find that he has fraudulently used the Challan belonging to the some other party so as to conceal his own identity when the Cattle Heads were being transported. Because of his such an action, not only cattle were seized but also the transporting trucks have been seized and confiscated and penalties have been imposed on the truck owners and truck drivers. For the action taken in respect of the truck owners and drivers, the present Appellant should be held fully responsible. Therefore, I am not inclined to interfere with the penalties imposed in all the four Appeals. I dismiss the prayer to set aside the penalties imposed on them. Thus, the Appellant would be eligible to get the value of the confiscated Cattle and Department will recover the penalty amount from this amount and pay the balance amount to the Appellant. The Appeals are disposed of thus.

Summary

Issues involved:
The issues involved in the judgment include the interception and seizure of cattle heads being transported, issuance of Show Cause Notices, confiscation of cattle heads, imposition of penalties, and the appeal process before the Tribunal.

Interception and Seizure of Cattle Heads:
The Customs (Preventive), Shillong intercepted 4 trucks transporting a total of 53 cattle heads, suspecting smuggling to Bangladesh. Detailed investigation led to the issuance of Show Cause Notices to the owner, Md. Mustafa Khan, resulting in the confiscation of the cattle heads and imposition of penalties.

Appeal Process and Dismissal:
The Appellant filed appeals before the Commissioner (Appeals) after the confiscation orders were passed. However, the Commissioner dismissed the appeals, leading the Appellant to approach the Tribunal seeking relief.

Confiscation and Penalties Imposed:
The Adjudicating Authority confiscated the cattle heads and imposed a penalty of Rs. 50,000/- in each of the Orders in Original (OIOs) passed. The Appellant challenged these actions, arguing that the investigation was based on presumptions without concrete evidence.

Argument and Counter-Argument:
The Appellant's representative contended that there was no evidence to prove smuggling to Bangladesh, as all statements indicated transportation to Aizawl or Gumrah. Conversely, the Authorized Representative highlighted discrepancies in the Challans used, suggesting fraudulent transportation methods by the Appellant.

Tribunal's Decision:
After considering the evidence and submissions, the Tribunal found that while the confiscation orders were unsustainable due to lack of conclusive evidence of smuggling to Bangladesh, the penalties imposed on the Appellant were justified. The Tribunal set aside the confiscation order but upheld the penalties, holding the Appellant responsible for fraudulent actions. The Appellant was directed to pay the penalty amount from the value of the confiscated cattle heads.

Conclusion:
In conclusion, the Tribunal disposed of the appeals by setting aside the confiscation order but upholding the penalties imposed on the Appellant. The decision aimed to balance accountability for fraudulent actions while ensuring a fair resolution in the matter.