CHINNAKARUPPAN P. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) OFFICERS of Customs intercepted an ambassador car (Regn. No. TN 07A 1199 on way from Madras to Tirumayam, on 01.08.1996. Shri Chinnakaruppan (appellant in Appeal No. C/166/1998) and Shri R. Sekar (owner of the car and the Proprietor of M/s V.M. Tours and Travels, Royapett ah, Madras) were the occupants of the car, besides its driver Shri Muthu. The driver told the officers that the car was proceeding to Adugapatti Village for dropping Shri Chinnakaruppan who had come from Singapore. He also showed Shri Chinnakaruppan's baggages which were in the boot of the car. The baggages were, upon examination, found to contain no contraband or incriminating documents. Shri Chinnakaruppan, however, handed over to the officers the following documents:

(2.) SHRI Chinnakaruppan retracted the above statement in a petition dated 06.08.1996 sent from jail, wherein he stated that, he had stayed at Singapore with his friend Shri Arumugam; that he purchased gold ornaments and some clothes with the money given by his friends and returned to India on 29.07.1996; that he was examined and cleared at Counter No. 18 of the Customs at Madras airport; that he waited for the said Shri Arumugam and one Shri Balasubramanian at V.M. Tours and Travels; that, on 31.07.1996, S/Shri Arumugam and Balasubramanian brought gold bars with them from Singapore, which were cleared on payment of Customs duty; that the said Shri Balasubramanian handed over 16 gold bars to him for sale at his native place; that, on his way from Madras to his native place, he was intercepted by Customs officers at Tholudur; that he was threatened and beaten up by the officers and was made to write a dictated statement; that he had neither given any gold bars to Shri Arumugam at Singapore nor brought any gold bars to India without payment of duty; and that, after coming out of jail, he would produce the Customs duty payment receipt issued to Shri Balasubramanian. It is further stated that the invoice dated 23.07.1996 had been obtained in his name only for the purpose of getting re -entry visa. Shri Chinnakaruppan sent two more petitions on 09.09.1996, wherein he reiterated the above statement and also claimed that he had shown the gold ornaments brought from Singapore, to Customs officers at Madras airport and had cleared the same without payment of duty as it was within the exemption limit. These petitions also stated that a re -entry visa was obtained on 27.07.1996 by Shri Chinnakaruppan on the strength of an invoice dated 23.07.1996 which was obtained from a known gold shop without purchasing any gold. Shri Chinnakaruppan's advocate also, by fax and telegram dated 02.08.1996, claimed that the gold bars and ornaments under seizure were imported by one Shri Balasubramanian, a Singapore national, under Baggage Receipt No. 14372 dated 31.07.1996. An affidavit dated 08.08.1996 of Shri Balasubramanian was also produced, wherein it was stated that he had arrived in India on 31.07.1996; that he handed over 16 of these gold bars to Shri Chinnakaruppan for profitable sale of the goods at his native place. An affidavit dated 21.08.1996 of Shri Arumugam was also produced, wherein he had stated that he knew both Chinnakaruppan and Balasubramanian and that Shri Balasubramanian had entrusted 16 gold bars to Shri Chinnakaruppan. Shri Arumugam also stated that he had himself, brought 42 gold bars and cleared the same under Baggage Receipt No. 14285 dated 31.07.1996. Shri Balasubramanian's address shown in Baggage Receipt No. 14732 dated 31.07.1996 was "C/o Abu Palace Hotel, Madras -84" but the General Manager of this hotel stated that nobody in the name of 'Balasubramanian' had stayed in the hotel during the relevant period. The Customs officers recovered the passport of Shri Chinnakaruppan from M/s DD Travels, Madras, through whom arrangements were being made for his further visit to Singapore. However, their efforts to apprehend Balasubramanian and. Arumugam did not succeed. Shri Chinnakaruppan's retractions were rejected as afterthought , by the Customs authorities. The seized gold bars and ornaments were certified, by the Chemical Examiner, to be of purity 99.9% and 83 to 91.8% respectively.

(3.) ON the basis of the results of investigations, a show -cause notice, dated 27.11.1996 was issued to S/Shri Chinnakaruppan, Balasubramanian and Arumugam for confiscating the gold bars and ornaments imposing penalties on the noticees. The proposals in the show -cause notice were contested. S/Shri G. Sivakumar (mahazar witness), R. Sekar (owner of car), Muthu (driver), C. Nagarajan, Superintendent of Central Excise, K. Balu (Inspector of Central Excise), R. Sowmyanarayanan (Inspector of Central Excise) and D. Manoharan (Inspector of Central Excise) were cross -examined on behalf of Shri Chinnakaruppan and Shri Balasubramanian. After hearing Counsel for the parties, ld. Commissioner of Customs ordered confiscation of the seized gold bars and ornaments under Section 111(d), (l) and (o) of the Customs Act and also imposed penalties on all the noticees under Section 112 of the Act. The present appeals are against the decision of the Commissioner.