2016 (2) TMI 649 - AT - Customs

Appeals Dismissed for Smuggling Involvement, Owner's Appeal Allowed

The appeals filed by Sh. Sanjay Saha alias Sona Saha and Sh. Chabi Mondal were dismissed, upholding the penalties imposed under Sec-114(i) of the Customs ... Levy of penalty for transportation of contraband goods - contraband Red Sanders wood was found concealed in 4508 kgs of potatoes - Retracted statement. - Held that:- The argument of the appellant is that a driver not knowing the mobile number, itself indicates that Sh. Sanjay Saha is wrongly implicated. The argument taken by the appellant is not convincing as Sh. Chabi Monkal is also not able to recall his son in laws number. It is also not correct to say that investigation deliberately booked Sh. Sanjay Saha & left Sh. Chabi Mondal untouched. Investigation has also proposed the penal action against the driver and a penalty has also been imposed upon Sh. Chabi Mondal by the Adjudicating authority. Accordingly the stand taken by this appellant is on afterthought and is required to be rejected because cases of smuggling and intended export of goods seized within the country has to be based on the statements of those involved in a particular case and the circumstantial evidences. Levy of penaty on the owner of vehicles who has leased out the vehicle waived - Levy of penalty on all other appellants confirmed. Issues involved:Appeal against penalties imposed under Sec-114(i) of the Customs Act 1962 by the Adjudicating authority on appellants. Appeal challenging the penalties imposed on appellants Sh. Sanjay Saha alias Sona Saha, Sh. Chabi Mondal, and Sh. Shib Shankar Dutta. Argument regarding the knowledge of the vehicle owner about the clandestine activities involving the vehicle. Analysis of evidence and statements to determine the imposition of penalties on the appellants.Analysis of Judgment:Issue 1: Penalties imposed on Sh. Chabi MondalThe Adjudicating authority imposed a penalty of &8377; 1 lakh on Sh. Chabi Mondal under Sec-114(i) of the Customs Act 1962. The penalty was justified based on Sh. Chabi Mondal's statement indicating his involvement in smuggling Red Sanders Wood and Potatoes for Sh. Sanjay Saha. The driver's awareness of the contraband nature of the goods and his role in clandestine activities supported the penalty imposition.Issue 2: Penalty imposed on Sh. Shib Shankar DuttaThe penalty imposed on Sh. Shib Shankar Dutta, the owner of the seized vehicle, was challenged by his advocate. The argument centered on the owner's lack of knowledge about the smuggling activities involving his vehicle. The absence of concrete evidence proving the owner's awareness of the illicit goods being transported led to the conclusion that the penalty on Sh. Shib Shankar Dutta should be set aside.Issue 3: Penalty imposed on Sh. Sanjay Saha alias Sona SahaA penalty of &8377; 25 lakh was imposed on Sh. Sanjay Saha alias Sona Saha by the Adjudicating authority under Sec-114(i) of the Customs Act 1962. The appellant contested the penalty, claiming that his statement was recorded under duress and threat. However, the evidence presented, including statements from the driver and owner of the vehicle, supported the imposition of the penalty on Sh. Sanjay Saha. The appellant's arguments were deemed unconvincing, and the penalty was upheld.Overall DecisionAfter thorough analysis and consideration of the arguments presented, the appeals filed by Sh. Sanjay Saha alias Sona Saha and Sh. Chabi Mondal were dismissed. However, the appeal filed by Sh. Shib Shankar Dutta was allowed, with consequential relief if any. The judgment highlighted the importance of evidence and statements in determining penalties under the Customs Act 1962, emphasizing the need for concrete proof of involvement in smuggling activities for penalty imposition.This detailed analysis of the judgment provides insights into the issues raised, arguments presented, and the final decision rendered by the Appellate Tribunal CESTAT KOLKATA regarding the penalties imposed on the appellants under the Customs Act 1962.