UNION OF INDIA Vs. JAGDISH CHANDRA VERMA

JUDGEMENT

(1.) This is an application under Section 130 (A) of the Customs Act,1962, and is directed against the order dated 20.11.2002, passed by the Customs, Excise & Gold (Control) Appellate Tribunal, East Zonal Bench, Kolkata, in Appeal No. 306/2002, whereby the appeal preferred by the respondent herein has been allowed, and the order of the first appellate authority under Section 121, read with Section 112 (b) of the Customs Act (hereinafter to be referred to as the 'Act'), has been set aside.

(2.) A brief statement of facts essential for disposal of this application may be indicated. On 15.10.1997, at 06.00 hrs., the Custom Authorities had intercepted one Lalan Prasad Gupta while he was travelling by a bus bearing registration No. BR-06P-385, from Patna to Bhittamore, and was brought to the Customs office. He was found in possession of a sum of Rs. 1, 68,200/-, wrapped in two bundles and preserved in his bag. Simultaneously, one small piece of paper with scribbling '1681/78' and '374.00' on the upper right corner of the paper, and 's2/45' was written just below '374.00'. One cloth tape was also recovered from his possession. On being questioned, he disclosed that the same is the sale proceeds of two pieces of foreign gold biscuit weighing 374 gms., which had been given to him by one Balram Prasad Gupta of Janakpurdham (Nepal), for sale to Jagdish Chandra Verma of Banglagarh, Darbhanga (Bihar), the respondent herein. Lalan Prasad Gupta was proceeded against under Section 121 read with Section 112(b) of the Act. This led to search of the premises of Jagdish Chandra Verma where nothing incriminating was found. The aforesaid Lalan Prasad Gupta, however, abandoned the proceeding, never appeared, and the cash amount of Rs. 1, 68,200/-was confiscated.

(3.) In view of the statements of Lalan Prasad Gupta, the present respondent, Jagdish Chandra Verma, was also proceeded against and found guilty in terms of Section 121 read with Section 112(b) of the Act. A show-cause notice was issued to him who gave a reply denying the allegations. The learned Joint Commissioner (Customs) found the respondent herein guilty in terms of Section 121 read with Section 12(b) of the Act and imposed a cash penalty of Rs. 20,000/-. The respondent challenged the same by preferring an appeal which was dismissed by order dated 17.7.2002, passed by the learned Commissioner (Appeals), Customs & Central Excise, Patna. The respondent herein preferred appeal before the Tribunal which has been allowed by the impugned order and that of the learned Commissioner has been set aside. Hence this application at the instance of the Department of Customs.