ABDUL KHADER Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONERS are before me challenging an order bearing No. 2633 and 2704/96 dated 30-12-1996 vide Annexure-C enhancing the penalty levied by an order dated 10-12-1993 vide Annexure-A and rejection of reference by orders No. 48 and 49/99 dated 6-8-99 vide Annexure-D by the tribunal.

(2.) PETITIONERS state in those petitions that officers of respondent No. 2 acting on credible information that a truck bearing registration No. KA-25-1254 carrying contraband silver bricks would be going towards Indore after passing through Karkala had stated checking all the lorries passing on that route. A truck with brick coloured front cabin was seen coming from Padubidri side and moving towards Karkala. The officers stopped the vehicle and the vehicle was brought to DRI Office, Mangalore. The vehicle was searched and the officers recovered 75 white metallic bricks weighing 2676. 394 kgs and valued at Rs. 2,14,11,152/- The silver bricks were seized in terms of a mahazar. Statements of the driver and the cleaner were recorded. Thereafter the DRI apprehended the petitioner- Abdul Khader and obtained his voluntary statement. He confessed that he understood contents of the mahazar for seizure of 75 silver bricks of foreign origin; that he had been doing smuggling for the last twenty-five years and his brother Dhiraj Hussain (second petitioner) was assisting him in the landing work. He knew that it is an offence to smuggle silver into India. Proceedings were initiated by way of show-cause notice calling upon the petitioners to show cause as to why the said 75 bricks of foreign origin should not be confiscated in terms of the Customs Act.

(3.) MATTER was contested. Thereafter the Collector of Customs Karnataka Region, Bangalore passed an order dated 10-12-1993. In the order, Collector of Customs confiscated the 75 silver bricks of foreign origin valued at Rs. 2,14,152/- in terms of the Customs Act. He also imposed penalty on various persons associated with it. The petitioner was asked to pay Rs. 1,50,000/- by the authority. The Department filed an appeal aggrieved by the order of the Collector before the tribunal. The tribunal after noticing the relevant facts enhanced the penalty on the petitioner Abdul Khader to fifteen lakhs and enhanced the penalty on the petitioner Dhiraj Hussain to five lakhs. Thereafter the petitioners sought for reference and the reference was rejected by the tribunal. It is in these circumstances, petitioners are before me challenging the order enhancing the penalty and the subsequent rejection of reference by the tribunal.