ATMA RAM MAHESHKA Vs. COMMISSIONER OF CUSTOMS, PATNA

JUDGEMENT

(1.) BRIEFLY stated the facts of the case are as under : -

(2.) DURING investigations, statements of various persons were recorded and enquiries were conducted at various places. Shri Prakash Chandra, Proprietor of M/s. Prakash Silk Mills, Bangalore had stated that the said silk yarn was sent from Bangalore to Patna for onward delivery to Shri Atma Ram Maheshka of Bhagalpur for the purpose of weaving. He stated that the said yarn was imported by him during September, 1994 as duty -free vide bill of entry under Duty -free Advance Licence. As the said yarn was not of a good quality and was not fit for use in their machines, the same was kept lying with Prakash Candra for two years when enquiries were made by different Weavers Organisations for weaving the same. Ultimately, a deal was struck with Shri Atma Ram Maheshka for making fabrics out of the silk yarn in question at a rate of Rs. 70.00 per metre. He stated that all the papers relating to the import of silk yarn in question were submitted and prayed for release of the same.

(3.) THEREAFTER , show cause notices were issued to the persons, which resulted in passing of the impugned Order by the Commissioner. The Commissioner (Appeals) observed that the marks and numbers shown in the bills of entry submitted by Shri Prakash Chandra were JM -1 -64. On physical verification of the packets of the goods seized at Patna, it was found that they were not containing the same marks and some of the cartons did not bear JM -1 -64 number at all. Similarly, in some of the other packets, though JM was there, serial numbers between 1 to 64 were not there. He also observed that it is unlikely that somebody would keep the yarn with him for two years and finally, send the same to a far -off place at Bhagalpur for getting the same converted into fabrics. From this, he concluded that this yarn in question was not the same which was imported by the appellants. Accordingly, he confiscated the same absolutely and also imposed a personal penalty of Rs. 1.00 lakh on Shri Prakash Chandra, Proprietor of M/s. Prakash Silk Mills, Banagalore. Personal Penalty of Rs. 50,000.00 has also been imposed upon Shri Atma Ram Maheshka, Bhagalpur from whom the goods were seized for weaving purposes on the gound that he played an active role in creating the story supporting Shri Prakash Chandra.