2002 (5) TMI 555 - AT - Customs

Tribunal reverses penalty for lack of evidence in smuggling case

HARISH KUMAR Versus COMMISSIONER OF CUSTOMS, NEW DELHI

The Tribunal set aside the penalty of Rs. 15 lakhs imposed on the appellant for involvement in the transportation of smuggled goods. Despite being ... Penalty on transporter of goods - Smuggling - Knowledge Issues:Imposition of penalty of Rs. 15,00,000 on the appellant for involvement in the transportation of smuggled goods.Analysis:The case involved an appeal against the penalty imposed on the appellant for his alleged role in the transportation of smuggled goods. The facts revealed that DRI Officers recovered various items from a consignment, including industrial bearings of Russian origin, transistors, and suitcases of Chinese origin. The appellant, a partner in the transport company, was accused of facilitating the transport of these goods without proper documentation. Show Cause Notices were issued, leading to the penalty imposition.During the proceedings, the appellant stated that he was unaware of the smuggled nature of the goods and that they were received in the ordinary course of business. The appellant's counsel argued that the accusations lacked a solid basis and were made by individuals aiming to implicate the appellant without offering them for cross-examination. It was emphasized that the appellant had no knowledge of the goods' illegal origin and had identified the owner of the goods, seeking the penalty's reversal.On the other hand, the Departmental Representative contended that the appellant was aware of the nature of the goods and had connections with individuals involved in the transportation, justifying the penalty imposition. The Commissioner had previously held that the appellant had knowledge of the goods and was linked to key individuals in the case.Upon careful consideration and examination of the evidence, the Tribunal observed that although the appellant was associated with the transport company and knew the parties involved, there was a lack of concrete evidence to prove his direct involvement or knowledge of the goods' illegal origin. Notably, the goods were not marked with their contents or foreign origin, and the appellant's identification of the consignee and consignor was not sufficient to establish his guilt under the Customs Act, 1962. Consequently, the Tribunal concluded that the penalty imposed on the appellant was unwarranted, leading to the setting aside of the penalty of Rs. 15 lakhs while upholding the rest of the impugned order.In conclusion, the Tribunal modified the penalty imposed on the appellant due to insufficient evidence linking him directly to the transportation of smuggled goods, ultimately disposing of the appeal with the penalty set aside.