M.P. GOENKA Vs. COMMISSIONER OF CUSTOMS (PREVENTIVE)

JUDGEMENT

(1.) This is an appeal under Section 130 of Customs Act, 1962 against the final order dated 15.09.2014, rejecting Customs Appeal No. C/147 & 195/2009-CU(DB) passed by the Central Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, whereby the penalty imposed by the Commissioner of Customs (Preventive), was affirmed.

(2.) The appellant is an authorized representative of a sole proprietary concern, viz. Adiya Trading Company. He conducts the business of that firm, i.e. cotton and polyester fabric procurement, from traders in Mumbai as well as retail and distribution in Delhi. The appellant had entered into an arrangement with M/s. Prakash Transport for storage of his goods in their godown (i.e. M/s. Prakash Transport), for a set period, subject to hire charges payment. On 23.01.1998, at around 1 PM, a Maruti van numbered DL 6CB 5069 was intercepted at the Ring Road. An investigation found that the van carried bundles of cloth (6174.90 metres of silk fabrics of Chinese origin), which were valued at Rs. 38,94,304/-. No legal authorization of purchase could be traced. These goods were seized. The driver, one Ranjan Sarkar, and another person, one Sanjay Maheshwari, were found in the van.

(3.) After various enquiries, and recovery of other material, Sanjay Maheshwari recorded a voluntary statement under Section 108 of the Customs Act, stating that in August 1997, the appellant, (whom Sanjay Maheshwari referred to as RN Goenka) had contacted him over the phone, and offered him a reasonable margin on bulk sales of Chinese silk. Accordingly, a series of transactions ensued, and Shri Goenka delivered 9000 metres of Chinese silk to Sanjay Maheshwari; Sanjay Maheshwari was further due to pick up 11,000 metres from Prakash Transport, Kishan Ganj, but was unable to do so. The Prakash Transport godown was searched, but nothing was found.