K. DIWAKAR SHETTY Vs. COMMISSIONER OF CUSTOMS, MANGALORE

JUDGEMENT

(1.) C /192/2002 : This appeal arises from OIO No. 2/2002, dated 18 -3 -2002 passed by the Commissioner of Customs, Mangalore, upholding the charge of involvement in smuggling by the appellant in terms of Section 112 of the Customs Act and imposing penalty of Rs. 10 lakhs. The same is under challenge.

(2.) THE short facts in the case are that the department, acting on the basis of information about transportation of smuggled goods of foreign origin along the Mangalore -Mumbai Highway, intercepted one Mitsubisi Mini lorry. On detailed search, the lorry was found to be loaded with gunny bags and HDPE bags stained with sand and black oil. Under Mahazar, the same was seized and it was found to contain I.C. engine (Internal Combustion) marked TOYOTA D TURBO ASIEN - MODEL 17201 -55030 TOYOTA 22100 -55210 DENSO, MADE IN JAPAN packed in carton boxes. The driver was interrogated who revealed his identity as K. Ganesh of Kasargod and his cleaners name as Radhakrishna of Kasargod. Detailed investigations were carried out with regard to the nature of the goods and the smuggled ones from Japan. Another vehicle was also intercepted and the driver revealed his name as T.M. Basheer. That vehicle was accompanied by a person named K. Balakrishnan who gave the details of the persons involved in smuggling the goods. Shri Balakrishnan named one Shri Vinaya and Mohandas. The Investigating Officers were able to trace persons involved in the smuggling and statements of Shri Kudlu Ganesh Rai, Driver; Shri Sadashiva, Driver; Shri Radhakrishna, Cleaner and Shri Rajesh, Cleaner of the vehicles were recorded. Further investigations led to the seizure of a vessel Sai Sagar, which was carrying ready -made garments. One person George Podikunju alias Kunju was the tindel of the vehicle. He was apprehended and statements recorded. Through his statements, the appellant was apprehended and found to be the main person behind the smuggling of the seized goods from the lorry and the seized ready -made garments. Separate proceedings have been initiated with regard to the goods seized from these lorries and with regard to the goods seized from the vessel Sai Sagar i.e. ready -made garments. Based on the statements of George Podikunju, Vinaya Kumar alias Vinaya Kumar Poojari, Eshwar Taku Harikantra and self -implicatory statements of the appellant, the appellant has been charged for involvement in the smuggling of these goods. The impugned order, in para 36, records the details of the statements given by the appellant. The said paragraph 36 is reproduced herein below : -

(3.) THE Commissioner, after detailed analysis of all the statements, including the retraction and also the result of the cross -examination, has come to a categorical conclusion that the appellant was involved in the activity of smuggling of these seized goods and was liable for penalty in terms of Section 112 of the Customs Act. The findings recorded in so far as the appellants case in paragraph 88 of the order is reproduced herein below : 88. The roles of individuals involved in the smuggling of goods are discussed below -