Tribunal upholds penalty under Customs Act for smuggling silver, reduces amount

The Tribunal upheld the penalty imposed under Section 112(b) of the Customs Act, 1962 for involvement in selling and purchasing smuggled silver recovered on 17-5-1991. The penalty was reduced to Rs. one lakh from the original amount, considering the circumstances. The appellant's claim of coercion in providing a statement was dismissed, and the evidence presented, including the driver's statement and the nature of the transaction, supported the Department's findings of smuggling.

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Issues:
Imposition of penalty under Section 112(b) of the Customs Act, 1962 for selling and purchasing smuggled silver recovered in a van on 17-5-1991.

Analysis:
The Department intercepted a van at Red Fort, Delhi, on 17-5-1991, containing 20 silver slabs weighing 3110 kgs valued at Rs. 21 lakhs. Statements of the appellant and others were recorded, revealing the appellant's involvement in selling and purchasing smuggled silver based on a phone call received for collecting the silver from the van at Red Fort. The driver of the van, Shri Gurbachan Singh, stated that he loaded the silver slabs under instructions and was to hand them over to a person identifying with a marked Rs. 5 note. The Adjudicating authority found the appellant liable for penalty based on this evidence.

The Tribunal considered the contention that the appellant's statement was not voluntary, as claimed by the appellant's counsel due to alleged torture. However, the Tribunal found the statement to be valid evidence, supported by the driver's statement. The Adjudicating authority's conclusion on the smuggled nature of the silver was upheld as the driver failed to produce legal purchase documents and admitted to delivering smuggled silver loaded by his employer. The storage plot owner confirmed the use of the plot for storing smuggled silver. The transaction's clandestine nature, as revealed by the appellant and the driver, further supported the Department's burden of proving the silver was smuggled.

In conclusion, the Tribunal upheld the penalty but reduced it to Rs. one lakh considering the circumstances. The appeal was partly allowed, affirming the penalty imposition under Section 112(b) of the Customs Act, 1962 for involvement in selling and purchasing smuggled silver recovered on 17-5-1991.

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