1987 (5) TMI 193 - AT - Customs

Tribunal Waives Penalty Deposit for Appellant in Gold Smuggling Case

The tribunal granted a waiver of the prior penalty deposit for the appellant under the Customs Act, 1962. Penalties were imposed on the appellant for ... Notified goods Issues:- Waiver of prior deposit of penalty- Imposition of penalty under Customs Act, 1962 and Gold Control Act, 1968- Seizure of contraband gold biscuits- Lack of Show Cause Notice- Voluntariness of inculpatory statement- Conscious possession of contraband gold- Legal arguments regarding possession and transportation of contraband gold- Burden of proof under Section 123 of the Customs Act, 1962- Reduction of penalty based on mitigating circumstancesAnalysis:The judgment addresses the issue of waiver of prior deposit of the penalty imposed on the appellant under the Customs Act, 1962. The counsel for the appellant requested a waiver of the deposit pending the appeal, which was granted by the tribunal due to both appeals being disposed of together. This decision allowed the appellant to proceed with the appeal without the need for prior deposit.The judgment involves the imposition of penalties under the Customs Act, 1962, and the Gold Control Act, 1968, based on the seizure of contraband gold biscuits from the appellant. The appellant failed to account satisfactorily for the possession of the gold, leading to the penalties being imposed by the Collector of Customs. The tribunal considered the circumstances surrounding the seizure and the appellant's involvement in the transportation of the contraband gold.A key issue raised was the lack of a Show Cause Notice in the case. The appellant's counsel argued that the absence of a Show Cause Notice rendered the impugned order invalid. However, the tribunal found that the appellant had waived the issue of the notice and participated in the personal hearing without objection, leading to the dismissal of this argument.The voluntariness of the inculpatory statement made by the appellant was also contested. The tribunal analyzed the statement and found it to be voluntary and true, despite a subsequent retraction by the appellant. The tribunal emphasized the importance of surrounding circumstances in determining the credibility of the statement.The judgment delved into the concept of conscious possession of contraband gold by the appellant. The tribunal rejected the appellant's argument that he was unaware of the contents of the rexin bag, highlighting inconsistencies in the appellant's explanation and the circumstances of the case.Regarding the burden of proof under Section 123 of the Customs Act, 1962, the tribunal held that the appellant failed to prove that the seized goods were not smuggled. The tribunal emphasized the statutory presumption against the appellant in such cases, leading to the confirmation of the penalties imposed.Mitigating circumstances were considered for the reduction of the penalties imposed on the appellant. The tribunal took into account the appellant's financial situation, family responsibilities, and the role of coercion in the offense. Ultimately, the penalties under both acts were reduced based on these factors, with the appeals being dismissed except for the modifications made.