1987 (6) TMI 194 - AT - Customs

Summary

Issues:
Challenge to the Tribunal's order imposing penalty on an individual involved in clandestine removal of bonded material; Justification of revoking penalty based on non-germane considerations; Legality of deriving pecuniary advantage under Section 112 of Customs Act, 1962.

Analysis:

1. The Collector of Customs challenged the Tribunal's order imposing a penalty on an individual for the clandestine removal of bonded material. The Collector raised questions regarding the justification of setting aside the penalty and revoking it based on considerations not directly related to the issue at hand. The legality of deriving pecuniary advantage under Section 112 of the Customs Act, 1962, was also questioned.

2. The Senior Departmental Representative argued that the questions raised involved mixed questions of fact and law. He contended that the evidence had been analyzed concerning the Customs Act, 1962, and the Supreme Court's ruling in a similar case was cited. The SDR also highlighted discrepancies in the treatment of different individuals involved in the case and attempted to distinguish the respondent's situation from that of another party. The SDR further pointed out that action had been initiated against Customs authorities for their lapses mentioned in the Tribunal's order.

3. The Tribunal, comprising S. Kalyanam and K.S. Venkataramani, considered the submissions and concluded that no question of law arose from the Tribunal's order warranting a reference. The Tribunal emphasized that the decision was based on an evaluation of evidence and factual circumstances, which did not constitute a legal question for reference. Citing a Supreme Court ruling, the Tribunal clarified that a finding on a question of fact is final if supported by evidence, even if a different conclusion could be drawn. The Tribunal found that the evidence considered in the case supported the respondent's position, and the Department's contentions lacked merit.

4. After a thorough review of the case materials, the Tribunal determined that no legal question arose from the Tribunal's order. Consequently, the reference application challenging the Tribunal's decision to impose a penalty was rejected.

This detailed analysis outlines the issues raised, the arguments presented by the parties, the Tribunal's reasoning, and the ultimate decision reached in the legal judgment.