1990 (9) TMI 185 - AT - Customs

Tribunal overturns order due to lack of natural justice, stresses proof beyond suspicion for penalties.

The Tribunal allowed the appeal against the order of the Additional Collector, Indore, due to the lack of proper observance of natural justice. The ... Search and seizure Issues: Appeal against order of Additional Collector, Observance of principles of natural justice, Liability based on assumption, Non-production of witnesses for cross-examination, Confiscation of watches, Imposition of penalty1. Appeal against order of Additional Collector:The appeal was filed by the son of the deceased appellant against the order of the Additional Collector, Indore. The Tribunal had remanded the matter to allow for cross-examination of witnesses, but not all witnesses were made available during the proceedings. The appellant denied involvement in smuggling and claimed that the liability was wrongly fastened on him solely because he was the head of the family.2. Observance of principles of natural justice:The Tribunal remanded the case due to the lack of proper observance of natural justice. Despite the remand, key witnesses were not produced for cross-examination, leading to defective proceedings. The appellant argued that the imposition of a penalty was unjustified as there was no evidence connecting him to smuggling activities.3. Liability based on assumption:The Additional Collector had based the liability on the deceased appellant merely on the assumption that he was the head of the family. The appellant contended that this was not a proper basis for imposing penalties and that there was no effort to establish a direct connection between him and the confiscated items.4. Non-production of witnesses for cross-examination:The department failed to produce crucial witnesses for cross-examination, including the seizing officer and other relevant individuals. The appellant argued that this failure undermined the fairness of the proceedings and highlighted the reliance on statements that were not subject to cross-examination.5. Confiscation of watches:The watches found in the appellant's residence were confiscated, but the appellant disclaimed ownership and knowledge of how they ended up in the bathroom. The appellant argued that the circumstances, including his illness during the search, supported his lack of involvement in any smuggling activities.6. Imposition of penalty:The appellant challenged the imposition of a penalty, arguing that it was based on assumptions and presumptions rather than concrete evidence. The appellant cited legal precedents emphasizing the need for proof beyond suspicion and exclusive possession to justify penalties. The Tribunal ultimately allowed the appeal, directing relief to the legal representative of the deceased appellant.