2005 (7) TMI 259 - AT - Customs

Unjust penalty overturned due to lack of corroboration, highlighting importance of independent evidence

The penalty imposed on the appellants solely based on the uncorroborated statement of an absent co-accused was found unjustifiable by the Tribunal. ... Penalty - Evidence Penalty was set aside where it rested solely on the statement of a co-accused from whose possession contraband silk was recovered. The co-accused supplied a fake address, was 'not traceable' and did not appear before the adjudicating authority for cross-examination; no incriminating documents or materials were recovered from the appellants' premises on search by DRI Officers. The Tribunal held that 'it is not desirable to impose penalty on un-corroborative testimony of co-accused person who was not available during proceedings,' noting absence of 'independent corroboration of evidence.' Given that the penalty was imposed on uncorroborated co-accused statement, the order imposing penalty was unsustainable and was set aside, there being 'no iota of evidence against the appellants.' Consequential relief granted to the appellants.