2014 (10) TMI 230 - AT - Customs

Tribunal Upholds Penalty for Illegal Silk Dealing, Evidence Confirms Appellants' Involvement

Shri MP. Goenka, Shri Sanjay Maheshwari Versus CC. (Preventive), New Delhi

The Tribunal upheld the penalty on the appellants for illegal dealing with Chinese silk, dismissing their appeals. The investigation established a ... Seizure of goods - Unlawful import of goods - non production of relevant documents - Held that:- It is a proved case of finding of Chinese silk in Maruti van as well as in the premises of shri Sanjay Maheswari when the live link showing origin and movement thereof through the transporter Prakash Transport Company from Nepal supplied by Shri Anil Jatia to shri M.P. Goenka was on record and that could not be rebutted. Arrival of such goods in India through Prakash Transport Co. and release thereof from that transporter on instructions of shri M.P. Goenka through his person shri Monu Haldar also could not be ruled out by the appellants - None of the appellants claimed the goods. The connection among shri Anil Jatia, shri M.P. Goenka and shri Sanjay Maheswari brought out a close proximity to the deal of the Chinese origin silk found in Maruti van as well as in the premises of shri Sanjay Maheswari. When they did not claim the ownership of the goods, their plea that the goods were not of Chinese origin is of no avail to them since Revenue established live link between shri M.P. Goenka and shri Anil Jatia as to the movement and deal of the offending goods came from Nepal to India for delivery to shri Sanjay Maheswari - there is no necessity to deal with further arguments of the appellants as to the retraction of confessional statement and such cogent evidence calls for dismissal of both appeals - Decided against assessee. Issues:1. Penalty imposed on appellants for illegal dealing with Chinese silk2. Ownership and origin of the seized goods3. Connection between the appellants and the illegal import of Chinese silkAnalysis:1. The appellants challenged the penalty imposed on them for dealing with Chinese silk illegally imported into India. The investigation revealed that a Maruti van was intercepted carrying Chinese silk fabric, and the appellants were connected to the goods. Shri Sanjay Maheshwari claimed ownership of the goods, which were seized for lack of evidence of lawful import. Further investigation at his premises uncovered more Chinese silk, indicating his involvement in the trade.2. Shri Sanjay Maheshwari admitted to dealing with Chinese silk, stating that he started his own business trading in such fabric. He mentioned receiving a consignment from Shri M.P. Goenka, which was to be delivered through a transporter. The investigation established a link between the seized goods and the illegal import from Nepal, with the involvement of Shri M.P. Goenka and Shri Anil Jatia.3. The Revenue argued that the goods seized originated from Nepal and were imported illicitly. Shri M.P. Goenka was identified as the importer through Shri Anil Jatia, with Shri Sanjay Maheshwari acting as the buyer. The live link between the parties and the movement of goods from Nepal to India was substantiated, leading to the upheld penalty on both appellants.In conclusion, the Tribunal found substantial evidence linking the appellants to the illegal import of Chinese silk, dismissing their appeals due to the established connections and ownership of the seized goods. The retraction of confessional statements and lack of evidence disputing the origin of the goods rendered the appellants' arguments ineffective, resulting in the confirmation of the penalty.