Court overturns penalties in Ketamine export case, stresses need for concrete evidence

The court found that the appellants could not be held responsible for the alleged export of 165 Kgs of Ketamine HCL or the attempted export of 25 Kgs of Ketamine. The penalties imposed on the appellants were set aside, and the appeals were allowed with consequential reliefs. The judgment emphasized the need for concrete evidence and corroboration in substantiating allegations of illicit export activities.

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Issues Involved:
1. Legitimacy of the export of 165 Kgs of Ketamine Hydrochloride.
2. Confiscation of 25 Kgs of Ketamine Hydrochloride.
3. Imposition of penalties on the appellants.

Issue-Wise Detailed Analysis:

1. Legitimacy of the Export of 165 Kgs of Ketamine Hydrochloride:
The adjudicating authority relied heavily on statements from various individuals, including Shri Jayesh Vadaliya, who claimed to have taken delivery of the Ketamine HCL on behalf of the appellants. However, the appellants argued that these statements were not corroborated by concrete evidence such as shipping bills, airway bills, or any documentation showing the actual export of the goods. The appellants also pointed out discrepancies in the statements of Shri Jayesh Vadaliya, who initially claimed to have received the lorry receipt from an unknown person but later stated it was given by Shri Sanjay at his office. The adjudicating authority failed to trace the supplier, Shri Rajesh Joshi, or provide evidence linking the appellants to the alleged exports. The court found that the reliance on uncorroborated statements and lack of concrete evidence could not substantiate the claim of exporting 165 Kgs of Ketamine HCL.

2. Confiscation of 25 Kgs of Ketamine Hydrochloride:
The 25 Kgs of Ketamine HCL seized from Choudhary Roadways were proposed to be confiscated under section 113 (d) of the Customs Act. The appellants contended that they never claimed ownership of the seized goods and that no evidence was presented to show their involvement in any attempt to export the seized Ketamine. The court noted that no export documents, such as shipping or airway bills, were prepared for the seized consignment, and there was no evidence of the appellants being in contact with any foreign buyers. Consequently, the court concluded that the appellants could not be held responsible for attempting to export the 25 Kgs of Ketamine.

3. Imposition of Penalties on the Appellants:
The adjudicating authority imposed penalties of Rs. 50 Lakhs on Shri Sanjay Manjibhai Gadhesariya and Rs. 5 Lakhs on Shri Kishan Manjibhai Gadhesariya under section 114 (i) of the Customs Act for making illicit exports. The appellants argued that the penalties were based on statements obtained under duress and later retracted. They also highlighted the absence of incriminating documents from their premises and the lack of evidence linking them to the alleged transactions. The court found that the retraction of statements, discrepancies in the statements of Shri Jayesh Vadaliya, and the lack of concrete evidence undermined the basis for imposing penalties. The court set aside the penalties, stating that the appellants could not be accused of exporting 165 Kgs of Ketamine HCL or attempting to export the 25 Kgs of Ketamine seized from Choudhary Roadways.

Conclusion:
The court concluded that the appellants could not be held responsible for the alleged export of 165 Kgs of Ketamine HCL or the attempted export of 25 Kgs of Ketamine. The penalties imposed on the appellants were set aside, and the appeals were allowed with consequential reliefs. The judgment emphasized the need for concrete evidence and corroboration in substantiating allegations of illicit export activities.

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