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TMI Blog2021 (8) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, old, used and damaged Ball Bearing, Roller bearings and taper Bearings by M/s Bhagwati International a 100% EOU. The appellant was accused of conniving in disposal of imported Ball bearings through a shop situated in Kashmiri Gate. The penalty of Rs. 5 lakhs was imposed on the appellant on conclusion of the adjudication proceedings. Hence, this appeal. 3. Learned Counsel of the appellant submits that the proceedings against the main noticee i.e. M/s Bhagwati International was dropped by this Bench vide 2017 (358) E.L.T. 431 (Tri. - Del.) except for the seizure of the live consignment. The appellant claims that CESTAT has also set aside the order of confiscation of seized goods from the local shops. The allegation against the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollows :- "After going through the entire records of the case, we find that the evidence on the basis of which above conclusion has been arrived at by the adjudicating authority is the inculpatory statements given by both, Shri K.K. Kaura and Shri M.L. Thapar, partners of the unit. However, it is on record that both the statements were promptly retracted before the Hon'ble Magistrate. The law is well settled that inculpatory statement which stands retracted subsequently, cannot be made the only basis for establishing the evasion of duty particularly, if such statements are not corroborated by other documentary evidences. We find that the Customs authorities have failed to corroborate the above allegation with any documentary evidence othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he allegation that they are part of the goods imported by the appellant". 7. We find that in terms of Section 112 of the Customs Act penalty imposable on any person, - "(a) who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under Section 111, or abets the doing or omission of such an act, or (b) who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under Section 111". 8. It is clear from the above provision that confiscation of goods is a necessary and pre-re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T. 823] to contend that the sale proceeds were also liable to confiscation and are goods within the meaning of Sec. 112(b). However, we note that this decision does not advance the Revenue's case for the reason that the Tribunal has held therein that seized currency alleged to be proceeds of smuggling, is liable to confiscation under the provisions of Sec. 121 of the Customs Act and not under Section 111 and therefore, penalty cannot be imposed under Section 112 as Sec. 112 provides for imposition of penalty on a person who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, depositing, keeping, concealing, selling or purchasing or in any other manner dealing with any goods which he knows or has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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