PRAMOD KUMAR JAIN Vs. COMMISSIONER OF CUSTOMS, PATNA

JUDGEMENT

(1.) VIDE the impugned Order, the Commissioner of Customs has absolutely confiscated Cinnamon valued at Rs. 14,91,600.00 and has imposed personal penalties upon various appellants as detailed below : -

(2.) THE main appellant is Shri Pramod Kumar Jain who has claimed the ownership of the Cinnamon in question. The said Cinnamon was seized by the D.R.I. Officers on 19 -12 -1996 from a godown named as Shikariya Compound situated at Motihari. When the officers visited the said premises, the said Cinnamon was found to be loaded in the two trucks situated inside the said Compound opposite M/s. Laxmi Bhandar. The said Compound comprises of about 10 godowns and a flour mill is also situated therein. The officers recorded the statements of the persons of the two trucks and thereafter, brought the goods to the Customs House. Subsequently, an employee of M/s. Laxmi Bhandar, Shri Pramod Kumar appeared before the Customs Officers and produced Bikri Lekha (sale memo) of Bazar Samittee, Motihari, showing that the consignment in question was to go to M/s. Pramod Kumar and Sons, Delhi. The papers relating to purchase of Cinnamon by Shri Pramod Kumar Jain of M/s. Laxmi Bhandar from Shri Purushottam Poddar and Shri Md. Jahangir, were also produced. It was claimed by Shri Purushottam Poddar and Md. Jahangir that they purchased the goods from the Customs Auction. Subsequently, the said two appellants also appeared before the authorities and agreed that the goods in question were purchased by them from the Customs Auction on 4 -12 -1996 and the same were subsequently sold to Shri Pramod Kumar Jain of M/s. Laxmi Bhandar. Thereafter, the statements of various other persons were also recorded. Based upon the above facts, show cause notices dated 16 -6 -1997 were issued to all the appellants proposing confiscation of Cinnamon on the ground that the same had been illegally smuggled by the appellant, Shri Pramod Kumar Jain from Nepal. The said notice also proposed imposition of penalties upon the various persons under the provisions of Section 112(b) of the Customs Act, 1962. The said show cause notice culminated into the impugned Order passed by the Commissioner of Customs, Patna vide which, apart from confiscating the seized Cinnamon absolutely, he imposed personal penalties upon various persons as indicated in the above two paragraphs. The two trucks in question were confiscated with an option to the owners to redeem the same on payment of redemption fine of Rs. 1.00 lakh each. The said Order of the Commissioner is impugned before us.

(3.) WE have heard all the appellants duly represented by their Advocates and the Revenue represented by Shri R.K. Roy, learned JDR.