K P BANDHU Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THIS appeal is directed against the order of the Collector of Customs, Cochin dated 3.11.1987 imposing a penalty of Rs. 10,000 on the appellant under Section 112 of the Customs Act, 1962 ('the Act' for short).

(2.) On 7.10.1986 the Preventive Officers of Customs searched the appellant's house and recovered from the possession of one Madhusoodhanan who is the appellant's brother-in-law's brother, two gold biscuits of foreign origin and Indian currency of Rs. 50,800. Since the authorities had reason to believe that the two gold bars had foreign markings of Swiss Bank Corporation, each weighing 116.500 gms. of 24 ct. purity and were respectively contraband goods and the sale proceeds of contraband gold, they effected the seizure of the same under a mahazar. The appellant gave an inculpatory statement on 7.10.1986 admitting his complicity for arranging the sale of the two gold biscuits and also his connection in the sales effected earlier resulting in the sale proceeds of contraband gold of Rs. 50,800 recovered from the appellant's house. The appellant's brother-in-law's brother Madhusoodhanan also gave an inculpatory statement to the effect that he was working as a typist and brought gold biscuits by concealing them in a SONY television set and cleared them out of the airport without any declaration and sold the two gold biscuits through the help of the appellant Likewise, one Unniraja also gave a statement confessing to his part in the above transaction and implicating the appellant and others in the commission of the offence in relation to the gold biscuits in question. It is in these circumstances after further investigation, proceedings were instituted against the appellant culminating in the present impugned order now appealed against. In the present case 1 am concerned only with the appellant Shri K.P. Bandhu.

(3.) HEARD Shri K.M. Vadivelu, learned D.R.