PRADEEP MAHAJAN Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This appeal has been directed against the impugned Order -in -Original dated 26.3.2001 vide which the Commissioner of Customs had imposed penalty of Rs. 10 lakhs under Section 112(b) of the Customs Act on the appellant on account of recovery of one gold biscuit, Indian and foreign currency, besides ordering confiscation of his two cars, as detailed therein.

(2.) On 4.9.97, the appellant was intercepted in the area Pitampuras while going in a Maruti Esteem VX car bearing registration No. DL -6CA -1614 by the DRI officers at about 0830 hrs. On enquiry, he disclosed his parentage, address and after initially denying, later on, on persistent questioning, admitted that he was carrying in the car Indian and foreign currency which was the sale proceeds of the smuggled gold biscuits. His statement was allegedly recorded at the spot. But the search of his car was not taken there. He was brought in that car to the DRI Office and there the panchnama regarding the recovery of 48,000 pound sterling and Indian currency of Rs. 6,50,000 was prepared in the presence of two witnesses. On further enquiry, the appellant allegedly revealed to the officers that the Indian and foreign currency recovered from his car was the sale proceeds of 139 pieces of smuggled gold biscuit which he sold at the behest of Puran Singh to one Raja, near Hanuman Mandir at Chandini Chowk. Thereafter, the residence of the appellant was also searched and from there Indian currency amounting to Rs. 90,000 and one gold biscuit lying concealed under the driver's seat in a red pouch, in the Maruti car parked at the residence was recovered and panchnama in that regard was prepared in the presence of wife of the appellant namely Anita Mahajan and which was also attested by two witnesses. Efforts were made to record the statements of Puran Singh and Raja but both could not be traced. However, the statements of the two wives of Puran Singh, namely Mrs. Baljit Kaur and Smt. Saminder Kaur were recorded on 4.9.97 wherein they denied their concern with the case and pleaded their ignorance. Puran Singh himself at that time was not available at the residence. The raid was also conducted at the transport company of Puran Singh, known as M/s. Azad Sandhu Transport Co., situated at AG -399, Sanjay Gandhi Transport Nagar, Delhi, but the same was found locked. On completion or the investigation, show cause notice was served not only on the appellant, but also on Puran Singh and Raja. During adjudication proceedings, Counsel for Puran Singh also appeared and was allowed cross -examination of the appellant on request. The appellant in the reply denied the allegations and maintained false implication. He also alleged that his alleged confessional statement was obtained under coercion and that he retracted the same through telegram followed by a detailed letter to ACMM on 17.9.97. He claimed the lone gold biscuit recovered from the car parked at his residence by alleging that the same belonged to his wife and also claimed Indian currency seized from his residence, but denied his concern with the foreign currency allegedly impounded from his Esteem car searched at the DRI Office.

(3.) The adjudicating authority on completion of the adjudication proceedings, ordered the confiscation of one gold biscuit, Indian and foreign currency, besides of the two cars, Maruti Esteem and Maruti 800 and also imposed penalty of Rs. 10 lakhs on the appellant. He had also imposed penalty of Rs. 12 lakhs on Puran Singh and Rs. 2 lakhs on Raja.