2002 (10) TMI 670 - AT - Customs

Appellate tribunal overturns Urad Dal confiscation and penalties in attempted illegal export case

The appellate tribunal set aside the confiscation of Urad Dal and penalties imposed on the appellant for attempted illegal export to Nepal under the ... Smuggling, attempt to export illegally - Confiscation, conveyance - Appeal Issues:1. Confiscation of Pulse (Urad Dal) for illegal export to Nepal.2. Imposition of redemption fine and personal penalty under Customs Act, 1962.3. Seizure of truck and subsequent legal actions.Issue 1: Confiscation of Pulse (Urad Dal) for illegal export to NepalThe Customs Officers intercepted a truck loaded with Indian Pulse (Urad Dal) parked at a hotel, suspecting illegal export to Nepal. Further investigation revealed similar incidents with other trucks belonging to the same party. Show cause notices were issued proposing confiscation of the seized Urad Dal and imposition of penalties. The Commissioner confiscated the Urad Dal under Section 113 of the Customs Act, 1962, based on evidence linking the owner to attempted illegal exports to Nepal.Issue 2: Imposition of redemption fine and personal penalty under Customs Act, 1962The Commissioner imposed a redemption fine of Rs. 80,000 and a personal penalty of Rs. 20,000 on the appellant for the attempted illegal export of Urad Dal to Nepal. The penalties were imposed under the provisions of Section 114 of the Customs Act, 1962, following the confiscation of the goods.Issue 3: Seizure of truck and subsequent legal actionsThe truck carrying the Urad Dal was detained by the Assistant Commissioner for investigation based on suspicions of illegal export. The Commissioner relied on interconnected evidence, including statements from drivers and previous seizures, to support the confiscation of the Urad Dal. However, the appellate tribunal found discrepancies in the evidence and concluded that the truck was not intended for illegal export to Nepal. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief to the appellant. As the main appeal was allowed, the confiscation of the truck belonging to the second appellant was also deemed unjustified, leading to its release.In conclusion, the judgment highlights the importance of thorough examination of evidence and independent scrutiny in cases involving allegations of illegal exports. The decision emphasizes the need for clear and substantiated evidence to justify confiscation and penalties under the Customs Act, ensuring fairness and adherence to legal principles in customs enforcement matters.