- (1.) This appeal is directed against the judgment of the Customs, excise and Gold (Control) Appellate tribunal (hereinafter referred to as 'the tribunal') dated 31/12/1991 whereby the appeal filed by the appellant against the order dated 10/07/1989 passed by the additional collector of Customs, New Delhi was dismissed. By his order dated 10/07/1989 the additional Collector of Customs had directed confiscation of the goods covered by bill of Entry No. 104090, dated May 24, 1988 of synthetic rags and serviceable garments absolutely under Ss. 111 (d) , 111 (f) , 111 (i) , 111 (1, 111 (m) , 111 (e) as well asunder S. 119 of the Customs Act, 1962 (hereinafter referred to as 'the Act') and had also imposed a personal penalty of Rs. 7 lakhs on the appellants under S. 112 (b) of the Act.
(2.) On 24/05/1988 M/s. Arbindo Woollen Mills filed a Bill of Entry for clearance at Inland Container Depot (ICD) Customs, pragati Maidan, New Delhi. Along with the said bill of Entry the said M/s. Arbindo Mills gave a declaration for importing the goods under open general licence saying that they are registered with the authorities in Kanpur as a small scale industry and that their registration has not been cancelled. They also filed the approval of the Textile commissioner, Kanpur, dated 9/05/1988 for the transfer and sale of 64 M. T. and 145 M. T. of synthetic rags to the appellants as transferred from one actual user to another in terms of the provisions of Ss. 108 to III of the Hand book of Procedure for Import and Export policy 1988-91. On examination of the bales it was found that the front view rolls of bales were found to be synthetic woollen rags and behind were found bales containing trousers cut into two pieces and serviceable garments including shirts and wind cheaters. The number of shirts in all the five containers on examination was found on pro rata basis as 40460 pieces and the total number of wind cheaters was arrived at 20020 pieces. The department took the view that these serviceable garments had been concealed amongst mutilated garments and as such the whole consignment was liable to be confiscated under S. I 19 of the Customs Act. Show cause notices were, therefore, issued to sanjeev Kumar, Proprietor of M/s. Arbindo woollen Mills as well as to the appellants and one S. P. Goyal. After considering the replies of the said persons to the show cause notices the additional Collector of Customs passed the order aforementioned. the additional Collector in the said order has recorded the following finding : "Evidently, it is clear that Shri S. P. Goyal is the brain behind in fraudulently importing huge quantity of raw-material in the name of non-existent unit and Shri Sanjeev kumar is his front man and M/s. Garg Woollen Mills is the beneficiaries in these imports. The non-appearance of Shri Ajay Garg Director of M/s. Garg Woollen Mills before the dri authorities in spite of summons also indicates guilt on his part. Similarly the appearance of Shri S. P. Goyal before the DRI officials as late as 10-10-88 in pursuance to the directions given by the Additional Sessions judge, Ludhiana on his anticipatory bail application dated 6-9-88 and that too in presence of his advocate is also indicative of his involvement in these nefarious activities. "
(3.) On appeal the tribunal has agreed with the said finding recorded by the Additional collector. The Tribunal has found that the permission for transfer of the goods in terms of the Import Policy granted by the Textile commissioner had been cancelled. It was further observed that "the present case is the culmination of intelligence received by the dri that ghost units are set up to misuse the o. G. L. facility given to actual users manufacturing shoddy yarns to import rags, and serviceable garments are imported and disposed of in the market. " The tribunal has, therefore, upheld the order regarding confiscation of the goods and imposition of penalty on the appellant.;