SHREE GANESHAM Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THE issue involved in all these appeals is same. These appeals have been filed against orders -in -original dated 1 -3 -99, passed by the Commissioner of Customs, Bangalore and also Orders in appeal passed by Commissioner of Customs (Appeals) Bangalore as shown below :

(2.) THE DRI Officers visited the premises of the appellants. They found silk yarn suspected to be of foreign origin in the premises of the appellants. In the premises of M/s. Ganesham, they found 153.30 kgs of silk yarn in four closed bags and also cash amounting to Rs. 24.99 lakhs and cheques worth Rs. 8.19 lakhs. There was also a register containing details of sales of silk yarn made in the previous week. All the above goods, currency and documents were seized. The officers drew samples from quantities of silk yarn seized. Statements were recorded from Sri Pramodkumar, the GPA holder and Sri Sushilkumar, a relative of the proprietor of the appellant on 17 -1 -98. In the statements they accepted the trading of such yarn without proper documents. Sri Pramodkumar, in further statements provided details of sales made by him of such yarn in the past. On 6 -2 -98, Sri Pramodkumar retracted the statements given by him on 17 -1 -98. On 12 -2 -98, the officers again recorded a statement from Sri Pramodkumar, where he provided, the details of purchases made by him. On 23 -3 -98, and on 24 -3 -98, the officers conducted investigations at the suppliers end. Statements were recorded from Sri Shyam Sundar Bansal partner of M/s. Nataraj Enterprises on 23 -3 -98 and 24 -3 -98, who confirmed the supply of 80 bales of silk yarn to the appellants under cover of proper documents. The officers also made enquiries with the bankers who confirmed the import of the above quantity. A Show Cause Notice was issued proposing to demand customs duties on the quantities of silk yarn sold by the appellants alleging that the said silk yarn has been illegally imported. There was a proposal to confiscate the seized goods. In the impugned Order the adjudicating authority, confiscated the seized goods with an option to redeem the goods on payment of a fine of Rs. 50,000/ - under the provisions of Customs Act, 1962. He demanded a duty of Rs. 13,57,895/ - and Cess of Rs. 2,122/ - under Section 28(1) of the Customs Act, 1962. The four bags used to conceal the above -mentioned Mulbery raw silk under Section 118/119 of Customs Act, 1962. Equal penalty of Rs. 13,57,895/ - was imposed on M/s. Shree Ganesham under Section 114A of the Customs Act, 1962. A penalty of Rs. 7,00,000/ - was imposed on Sri Pramod Kumar, GPA Holder of M/s. Shree Ganesham under Section 112(b)(ii) of the Customs Act, 1962.

(3.) SRI G. Shivadass, and Sri Manohar Jeerige, learned Advocates appeared for the appellants and Sri R.N. Vishwanath SDR appeared for the Revenue. The learned advocate adduced the following arguments.