2003 (9) TMI 445 - AT - Customs

Summary

Issues:
1. Imposition of penalty by Commissioner of Customs on the appellant.
2. Alleged recovery of gold bars and foreign currency from the appellant.
3. Validity of the confessional statement obtained from the appellant.

Analysis:
1. The appellant appealed against the penalty imposed by the Commissioner of Customs. The appellant was intercepted outside the Embassy of DPR Korea, where he was found carrying a packet containing gold bars. The impugned order imposed a penalty of Rs. 5 lakhs on the appellant. The appellant denied the recovery of the gold bars and foreign currency, claiming inadequate evidence and alleging that his confessional statement was obtained under duress.

2. The appellant was intercepted outside the Embassy carrying a packet with 40 gold bars. However, discrepancies were found in the search and seizure process. The appellant was not searched at the spot of interception, and the packet was only found in the car after being taken to the DRI Office. The Panchnama was prepared on the 7th floor of the building, raising doubts about the authenticity of the recovery process. One attesting witness denied the recovery, casting further doubt on the evidence presented.

3. The confessional statement of the appellant was retracted, with allegations of coercion and physical abuse during its recording. The statement lacked corroboration from other reliable evidence. The appellant consistently denied possession of the gold bars and foreign currency, claiming they were planted on him. The Court found the confessional statement unreliable without additional supporting evidence and set aside the impugned order, allowing the appeal with consequential relief under the law.

This detailed analysis highlights the issues of penalty imposition, alleged recovery of contraband, and the validity of the confessional statement in the legal judgment delivered by the Appellate Tribunal CESTAT, New Delhi.