K.P. ABDUL MAJEED Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) Following questions of law have been referred to this Court by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench of Bangalore:

(2.) The facts involved in this case would disclose that the Circle Inspector of Police, Nadakavu and party searched the residential premises of one N. K. Abdul Rahiman. 900 gold biscuits of foreign origin weighing 104 kgs. and 891 grams with 9 empty cotton jackets were seized and handed over to the Assistant Collector of Customs in terms of Mahazar dated 24/02/1989. The officers of Directorate of Revenue Intelligence seized gold biscuits of foreign origin from a Contessa Car on 25/02/1989, which was parked in the residential premises of K. V. Moosan Haji. On 26/02/1989, the Superintendent of Special Customs Preventive Unit, Calicut, seized currency of Rs.4,37,550/- and one semi - automatic rifle from the house of one E. K. Sivanandan at Calicut. Several vehicles and articles were also seized during the aforesaid operations. Though the residential premises of the appellant was searched by the officers on 03/03/1989, no incriminating materials were recovered. Several other business premises were also searched and statements were recorded under S.108 of the Customs Act. When statements were taken, 17 of them had spoken about the role of the appellant in smuggling contraband gold biscuits to India. All the persons were arrested under S.104 of the Customs Act and remanded to judicial custody by Additional Chief Judicial Magistrate (Economic Offences), Ernakulam. The persons, who had given statement under S.108, had filed statements, retracting their statements as well.

(3.) The appellant appeared before the Assistant Collector of Customs, Calicut on 06/05/1989. He did not give any confessional statement admitting commission of offence under the Customs Act. Show - cause notice dated 08/08/1989 was issued to the appellant and others on the allegation of smuggling 3300 gold biscuits into India. The appellant denied the allegations. The adjudicating authority, after considering the replies filed by the persons involved in the matter, held that the appellant is liable for imposition of penalty. Hence, penalty was imposed for an amount of Rs.20 lakhs under S.112A of the Customs Act, 1962.