1992 (1) TMI 208 - AT - Customs

Tribunal overturns penalties, stresses substantial evidence in customs case.

TECHNO ELECTRONICS Versus COLLECTOR OF CUSTOMS

The Tribunal allowed the appeals, overturning the penalties imposed on the appellants and ordering the modification of the confiscation order. The ... Penalty Issues:- Confiscation of tape deck mechanisms- Imposition of penalties on parties involved in illegal importConfiscation of Tape Deck Mechanisms:The case involved the confiscation of 1957 tape deck mechanisms by the Additional Collector of Customs due to illegal import into India without a valid license. The goods were found to be of foreign origin and valued at over Rs. 46 lakhs. Statements from involved parties revealed the chain of events leading to the import, including dealings between various firms for the purchase and supply of the tape deck mechanisms. The adjudicating authority held that the goods were illicitly imported and liable for confiscation, imposing penalties on the appellants for their involvement. The appellants contested the allegations, providing details of the transactions and asserting that the confiscated goods were different from those supplied by them.Imposition of Penalties:The appellants challenged the imposition of penalties, arguing that there was insufficient evidence linking them to the offense. They contended that they had provided necessary information about the transaction, including the intermediary through whom the goods were sold to Bharat Electronics. The appellants consistently maintained that the confiscated tape deck mechanisms were not the ones supplied by their firm, as they did not deal with 9 volts micro motors, unlike the confiscated goods. The Tribunal found merit in the appellants' arguments, noting discrepancies in the adjudicating authority's reasoning and the lack of substantial grounds for imposing penalties. Consequently, the Tribunal set aside the penalties imposed on the appellants and directed the refund of any deposited amounts.In conclusion, the Tribunal allowed the appeals, overturning the penalties imposed on the appellants and ordering the modification of the confiscation order. The judgment highlighted the importance of substantial evidence and justifiable grounds for penal actions in cases of alleged illegal imports, emphasizing the need for a clear link between the accused parties and the offense. The decision underscored the appellants' right to a fair hearing and the significance of providing detailed explanations to refute allegations in customs-related matters.