TaxTMI 
TaxTMI 
2024 (5) TMI 286
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.... the exit of the arrival area of the Netaji Subhash Chandra Bose International Airport, Kolkata after passing through the green channel. All of them had arrived from Bangkok on 25.02.2011 by Flight No. TG 0313. After enquiry as to whether they were carrying any dutiable goods, all of them fumbled and did not answer properly. Upon repeated questioning, all of them ultimately admitted that they were carrying dutiable goods, which they had not declared to the Customs authorities. 3. On demand, all the above four passengers/appellants handed over the counter-foils of boarding pass, nine baggage claim tags of Flight No. TG 0313 for nine luggage bags having a collective weight of 180 kg. and counter-foils of immigration form required to behanded over at the Customs exit gate. Thereafter, the Officers escorted all the passengers along with their baggage to the Customs room in the arrival hall for proper examination of their baggage. 3.1. On examination, it was found that they were carrying altogether in their hand baggage 5 Kg. grey metal powder suspected to be Iridium (packed in 500 gms. in see-through plastic packets), 5 Kg. grey metal powder suspected to be Ruthenium (packed in 1....
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..... On earlier occasions, while returning back from Hong Kong, he brought readymade garments, mobile accessories, different electronics items etc. from Hong Kong. He was introduced to some agents in Hong Kong through some of his friends. Those agents informed him over telephone to go to Hong Kong. Then accordingly he used to purchase air tickets and fly to Hong Kong where he stayed in guest houses in Hong Kong like China Town Guest House, Disneyland Guest House, Kamal Guest House, etc. After reaching Hong Kong, he used to call those agents and accordingly goods were provided by those agents for carrying the same to India. After landing in India, he used to send those goods to the persons as instructed by the Hong Kong agents through air courier like Blue Dart, Jet Airways, etc. The agents gave him only the names or code names of the recipients and their mobile numbers. Sometimes, he had also sent the goods through couriers like M/s. Mahalaxmi Courier whose office was located in Burrabazar and Khiddirpore area. The agents in Hong Kong used to give them the air fare and the cost for the food and lodging in Hong Kong. The agents also gave them service charge for carrying the goods. He u....
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.... Airport and till that time, Sikander did not inform him as to the name of person to whom those goods had to be delivered. He categorically stated he was merely the carrier of the said goods. 5.3. In reply to another specific query, he stated that though he was well aware of the facts that he had to pay duty of the goods he was carrying but he was coming out through green channel as it was his responsibility to take out the goods without paying duty for the owner of the goods and for that, he was being paid. 6. Afaque Alam (appellant in Customs Appeal No. 70208 of 2013) who is a resident of Kolkata, in his Statement dated 25.02.2011, stated that he was the only earning member of his family consisting of his wife, one child, his parents and two sisters. He further stated that he did not have any bank account in his name. His nick name was 'Pattu' and he was known as Pattu in his locality. He used to earn money by way of carrying goods from Hong Kong to Kolkata and he used to go to Hong Kong twice or thrice in a month. He has been engaged in this sort of business for the last ten years. Usually, he brought Readymade Garments, mobile accessories, different electronics items, etc....
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.... with the cartons. He stated that he had no idea about the value of the goods carried by him. Haji Bhai had given him the goods for delivery in India but he was not aware as to whom he was to deliver those goods and also the owner of the goods. He was not informed about the name of the owner of the goods till his interception by DRI. He was aware that the goods carried by him were dutiable but he was coming out of the green channel to avoid payment of duty and he was paid specifically for this job. 7. In his statement dated 25.02.2011 recorded under Section 108 of the Customs Act, 1962, Md. Asifuddin, stated that he was living at his residence at Kolkata for the last 19 years with his wife, one child and parents. His brother also used to stay in his residence with his wife and their two children. He used to earn his living by way of transportation of goods from Hong Kong or Bangkok to Kolkata and he used to go to Hong Kong once or twice in a month. He had been engaged in this sort of business for last six to seven years. He was drawn into this business by his friend. On earlier occasions while returning back from Hong Kong, he brought Readymade Garments, mobile accessories, diff....
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....e he was carrying. At the time of coming out through green channel in the arrival hall of Kolkata airport he was intercepted by officers of DRI and was taken to the office of AIU. There they checked his luggage and told him that the watches he was carrying was worth Rs. 5.75 lakhs and the metal polish were actually high value Iridium / Ruthenium power valued at Rs. 35 lacs. They seized the goods along with cartons. He had no idea that the goods which he was carrying was of such value. He also stated that neither did he purchase the goods nor those goods were owned by him. Sikander gave those goods to him for delivery in India. He did not know to whom he would have to deliver those goods as he had been intercepted inside the airport and till that time Sikander did not inform him the name of the person whom those had to be delivered. He categorically stated that he was merely carrier of the said goods. 7.2. In reply to specific query, he inter alia stated that though he was well aware of the fact that he had to pay duty for the goods he was carrying, he was coming out through green channel as it was his responsibility to take out the goods without paying the duty for the owner of ....
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....a on 23.02.2011, but could not return as the goods were not ready. He started his journey from Hong Kong on 24.02.2011 and reached Kolkata at about 00"40 hrs of 25.02.2011 via Bangkok in Thai Airways flight no. TG-313. He had two hand luggages with him - one black side bag and the other a bi-coloured (pink and white) polythene bag. He had 6.5 Kgs. of stone beads (1770 gross) marked as 'SS 13', 4 Kgs stone bead (1500 gross in each) marked as 'SS Emerald', 12000 memory cards (each 2 GB) and 2 Packets (each contained 1 Kg.) grey coloured powdered substances in his black side-bag and 2 packets, each 5 Kgs, stone bead (1500 gross in each) marked as 'SS Rose' in bicoloured (pink and white) poly-packet. At the time of coming out through green channel in the arrival hall of Kolkata airport he was intercepted by the officers of DRI and was taken to the office of AIU. There the officers have checked his luggage and told him that the powdered substances which he was carrying were actually high value Ruthenium powder worth Rs. 12-14 lakhs and the memory cards were valued at about Rs. 18-20 lacs. The officers seized the goods along with cartons. He had no idea that the goods which he was carryi....
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....abazar and Khidirpore area could be located except the one owned by Meraj Ahmed. 11. From the Statement tendered of Meraj Ahmed and the challan books of the said courier company, it was noticed that they do not write any details of senders of goods or recipients of goods in their respective challans. It was also seen that the practice followed by them in booking the goods was similar to the mode of booking as stated by the four apprehended persons. On being asked to explain, it was replied that as they used to take booking and effect delivery from their respective offices, the sender's or recipient's address was not written down. 11.1 Accordingly, since the explanation did not justify their action in not mentioning the address of the senders or recipients, therefore, for those omissions and commissions, it was alleged that Meraj Ahmed was actively engaged in carrying out smuggling activities and aided and abetted the smuggling activities of the other four co-appellants. 12. Based on these facts, a Show Cause Notice was issued to all the five appellants herein and the matter was adjudicated by the Ld. Commissioner vide the impugned order wherein the value of the goods were ....
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....judicating authority is through proper analysis of the best value available of the goods seized except Ruthenium wherein in the 'Remarks' column it has been stated by the ld. adjudicating authority that "the value of this smuggled goods has been arrived at by adding duty quantum, overhead and profit margin for this very rare and precious smuggled item." 17.3. We are not in agreement with the said observation made by the ld. adjudicating authority in the impugned order. As the quantum of duty along with overheads and profit margin cannot be taken as the 'value' of the said goods, in these circumstances, the value of the said goods has to be taken as Rs.3,00,000/- (Rupees Three Lakhs) per kg., which is in the range arrived at by the ld. adjudicating authority i.e., Rs.2.82 lakhs to Rs.3.38 lakhs per kg. Accordingly, the duty has to be re-quantified which is payable by the appellants. 18. In the facts and circumstances of the case, we also find that redemption fine imposed on the appellants for release of the seized goods is justified. The penalties imposed are also found to be justified. In view of this, we do not find any merit on these grounds in the appeals filed by the appe....