1989 (11) TMI 161 - AT - Customs

Tribunal upholds smuggling penalties: Silver, currency, and truck confiscated. Kanwarjit Singh fined Rs. 25,000, Jagir Singh Rs. 10,000.

The tribunal confirmed the confiscation of silver, currency, and the truck used for smuggling activities. Kanwarjit Singh was found liable for smuggling ... Penalty for attempt to export silver improperly Issues Involved:1. Confiscation of silver and currency.2. Penal liability of Kanwarjit Singh.3. Penal liability of Jagir Singh.4. Confiscation of the truck.Issue-wise Detailed Analysis of the Judgment:1. Confiscation of Silver and Currency:The Directorate of Revenue Intelligence (DRI) and Customs staff seized 55 bricks of silver weighing 566.500 kgs and Indian currency Rs. 20,000/- from a secret cavity in Truck No. PJE 1555 on 16-3-1983. The seizure was based on the failure of the drivers and cleaner to produce any legal documentation for the silver within the specified 50 km belt from the Indo-Pak border, leading to the belief that the silver was meant for smuggling. The Collector of Customs, Chandigarh, ordered the confiscation of the silver under Section 113 of the Customs Act and the currency under Section 121 of the Customs Act.2. Penal Liability of Kanwarjit Singh:The adjudicating authority found Kanwarjit Singh liable for smuggling based on various statements, including those of Jagir Singh, Joginder Pal Singh, and Beer Singh. Kanwarjit Singh was identified as a partner in the smuggling activities and the creation of the secret cavity in the truck. Despite the appellant's claims that the authority proceeded on suspicion and relied on hearsay, the tribunal upheld the penalty of Rs. 25,000/- imposed on Kanwarjit Singh, finding the evidence sufficient and corroborated by multiple sources.3. Penal Liability of Jagir Singh:Jagir Singh, the first driver of the truck, was found to have complete knowledge of the contraband nature of the goods and was involved in the smuggling activities. His statements, although retracted later, were corroborated by other evidence and testimonies. The tribunal considered his plea regarding the harshness of the penalty and reduced the penalty from Rs. 25,000/- to Rs. 10,000/-, acknowledging his limited financial gain and role as a salaried employee.4. Confiscation of the Truck:The truck used for transporting the contraband silver was ordered to be confiscated under Section 115 of the Customs Act, with an option for the owner, M/s. Deep Motor Finance, to redeem it by paying a fine of Rs. 50,000/-. The tribunal upheld the confiscation, noting that the knowledge of the person in charge (Jagir Singh) about the contraband goods was sufficient for confiscation under Section 115(2), regardless of the owner's knowledge.Conclusion:The tribunal confirmed the confiscation of the silver, currency, and truck, and upheld the penalties imposed on Kanwarjit Singh and Jagir Singh, with a reduction in the penalty for Jagir Singh. The appeals were disposed of accordingly.