Customs penalty upheld for deliberate misdeclaration and unlawful duty-free sales; financial hardship did not justify reduction.

Penalty under the Customs Act was sustained where the appellant's admissions and the findings below established unauthorised sale of duty-free imported silk, mis-declaration in export consignments, and conscious participation in the scheme as the controlling person of the concern. The Tribunal accepted the Commissioner's factual and jurisdictional findings, found no infirmity in them, and held that deliberate contravention and wilful misstatement justified the penalty. Financial hardship and economic necessity did not warrant reduction or interference, because they could not excuse dishonest customs evasion or the resulting revenue loss. The penalty was therefore upheld and confirmed.

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Issues: Whether the penalty imposed on the appellant under the Customs Act, 1962 was sustainable on the facts found, and whether the appellant had shown any ground for reduction or interference with the adjudication order.

Analysis: The appellant's own admissions and the adjudicating authority's findings established unauthorised sale of duty-free imported silk, mis-declaration in export consignments, and participation in the scheme as the controlling person of the concern. The Tribunal noted that the Commissioner had already dealt with the jurisdictional and factual objections in detail and that no infirmity was shown in those findings. Financial hardship and economic necessity were held not to justify violation of customs law or to warrant reduction of penalty where the conduct disclosed deliberate and dishonest contravention causing substantial revenue loss.

Conclusion: The penalty was upheld and confirmed against the appellant.

Ratio Decidendi: A penalty under the Customs Act is justified where the evidence shows deliberate contravention, wilful misstatement, and conscious participation in unlawful evasion, and such penalty is not liable to be reduced merely on plea of financial hardship.

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