KAMAL KISHORE AGARWAL Vs. CCE

JUDGEMENT

(1.) In these five appeals, arising out of a Common Adjudication Order No. 26/2001, passed by the Commissioner of Customs, the issue to be decided is whether in the facts and circumstances of the case, penalty under Section 112(b) of the Customs Act is imposable on the appellants.

(2.) Briefly stated the facts are that acting on an information, the Customs Officers, intercepted a Bus on 13.6.97 at Kudy Village, Jodhpur. The Officer got the suspected persons alighted from the bus and brought to Customs House, Jodhpur where search of them resulted in recovery of Indian currency from the possession of every one of them. The total Indian Currency recovered was Rs. 23,00,240. All the eight persons admitted to have brought foreign marked gold biscuits from Ahmedabad and sold to the Appellants and they were carrying the sale proceeds to Ahmedabad. The Commissioner, under the impugned order, had confiscated absolutely the Indian Currency under Section 121 of the Customs Act and imposed penalty, amongst others, on all the Appellants, holding that as the gold was carried by the persons from Ahmedabad without any bi11/voucher and as they were given coat/jacket for concealing the gold, the gold was of smuggled origin.

(3.) Shri Karmendra Chowdhary, learned Advocate submitted that the statements of all the eight persons from whose possession, the Indian Currency was seized were recorded when they were under the control and custody of the Customs Officers in the Customs House; that as such no reliance can be placed on their statements; that the Appellants had denied to have purchased gold or any smuggled gold in their statements, that the burden of proof is on the Department to prove that the Indian Currency was the sale proceeds of the smuggled gold which the Department has not discharged at all; that the statements of the co -accused cannot be relied upon without independent corroboration.