Customs, Excise and Gold Tribunal - Mumbai
Chiranika International vs Commissioner Of Customs on 16 February, 1998
Equivalent citations: 1998ECR934(TRI.-MUMBAI), 1999(106)ELT175(TRI-MUMBAI)
ORDER Gowri Shankar, Member (T)
1. In the order impugned in the appeal, Collector (Appeals) has ordered confiscation of the consignment of cynuric chloride seized from the possession of the appellant and imposed a penalty of Rs. 50,000/- in terms of Clause (b) of Section 112 of Custom Act. He determined the quantum of penalty in accordance with Sub-clause (2) of Section 112.
2. The goods were seized from the warehouse in which they had been deposited by appellant. The proprietor of the appellant told the Customs department that it had been given the goods a.s security by an unknown person who had accepted it for a loan of an Rs. 8 lakhs left by security of persons and he did not have the details of the person.
3. The appeal is limited to the quantum of penalty. The Advocate for the appellant says the goods do not belong to the appellant and it does not claim them.
4. The Collector in his order does not dispute the version put forward by the appellant. He orders confiscation of the goods on the ground that they were smuggled. He also accepts that the appellant did not smuggle the goods but imposes the penalty on the grounds that the appellant's version is not credible and it does not wish to have the owner of the goods. While the departmental representative reiterates the reasoning of the Collector but it is seen to be contradictory. The Collector says that he takes a lenient view because there is no evidence that the appellant knowingly and with mala fide intention took smuggled goods into the possession. If this was the case and in the absence of knowledge of mala fides is accepted it would follow that no penalty can be imposed in terms of Sub-clause (2) of Section 112 of the Act which requires the presence of knowledge or reason to believe that goods are liable to be confiscated. The order of Commissioner is therefore, not sustainable.
Appeal allowed. Impugned order set aside. Consequential relief if any.