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TMI Blog2019 (8) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... , under section 151 of Customs Act, 1962, to act as watchdogs of officers of customs. In the absence of any evidence of their awareness that the goods transported by them should legally have been delivered at the address provided for in the advance licences, the imposition of penalty against them is not justified - the penalties imposed on Shri Gulbir Singh Anand and Shri Naresh D Bhanushali are set aside. Penalty on other conspirators - beneficiaries of, the diversion of brass scrap and copper scrap imported against fraudulently obtained advance licences purportedly for manufacture and export - HELD THAT:- Customs Act, 1962 prescribes limitations for the recovery of duty under section 28 of Customs Act, 1962. However, there is no such limitation insofar as confiscation proceedings are concerned and, likewise, on the imposition of penalty. There is no doubt that a reasonable proximity of detriment with the cause is a consummation devoutly to be sought for. Nevertheless, that cannot be a reason, or a ground, for failing to act within the confines of the statute that is intended to protect the country from the ill-effects of smuggling - there is no illegality in the impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presented for the import of 24 consignments between October 2002 and March 2003, were suspended on 3rd March 2003 by the licensing authority following which investigations were commenced by the Directorate of Revenue Intelligence. 3. During the course of investigations, statements of Shri Bhimsen Singh, partner of the custom house agent , M/s Nikhil Shipping Agency, and that of Shri Gulbir Anand, proprietor of M/s Apollo Roadways, and of Shri Naresh D Bhanushali, proprietor of M/s ND Bhanushali, both of whom had undertaken the carriage of the imported goods, were recorded. The custom house agent and the transporters admitted to have dealt with the three persons supra associated in the importing entity. Accordingly, show cause notice dated 3rd October 2007 was issued against the importer as well as the various individuals. Admittedly, the evidences relied upon in the said show cause notice, as well as the notice itself, did not name Shri Sajjan Kumar Goel. 4. That was to come later after his interception and arrest in April 2008. From his deposition and that of the other individuals named in the notice, it was alleged that he had not only invested sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Undoubtedly, an ordinary financier, without any benefit other than interest, cannot be held to be a contributory to contraventions calling for confiscation of the goods. The identification of circumstances of involvement of Shri Goel, if ascertained to be correct, would alter the hierarchy of involvement and the consequences thereof. It would, therefore, be appropriate to take up the submissions made on behalf of Shri Goel first. 8. Besides the primary plea of having been a lender of money to M/s Lord Empire International, it is submitted by Learned Counsel that the inclusion of Shri Goel, through an addendum to show cause notice, is patently illegal. According to him, the investigations culminating in issue of the original notice did not contain any reference to Shri Goel and none of the noticees therein had brought up his name or his involvement in the import and clearance. He questions the genuineness of the statement recorded after the issue of show cause notice as none of them had been asked to substantiate this failure to do so on previous occasions. Learned Counsel also challenges the reliance placed upon the confession recorded from Shri Goel as this had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1962. However, there is no such limitation insofar as confiscation proceedings are concerned and, likewise, on the imposition of penalty. There is no doubt that a reasonable proximity of detriment with the cause is a consummation devoutly to be sought for. Nevertheless, that cannot be a reason, or a ground, for failing to act within the confines of the statute that is intended to protect the country from the ill-effects of smuggling. We find no illegality in the imposition of penalties for incidents that have occurred more than five years prior. 11. The findings against Shri Goel, as the prime conspirator, is based on a confession recorded from him as well as the corroboration of the confession from the other noticees. It is also on record that the show cause notice, as originally issued, did not include him as a noticee and has no mention of him anywhere within. The corroboration of the confession is, therefore, inconsistent with statements recorded before the confession obtained from Shri Goel. It is only with a reconciliation of the inconsistency that the corroborative statements could be acceptable for recording a finding. Such a reconciliation is markedly abse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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