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TMI Blog2008 (9) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... nd and Shri Kishan Chand as partners and was dealing in ball bearings. In pursuance of search operations, seizures have been made of ball bearings numbering 1,58,395 and valued by the Customs at Rs. 2,50,34,750/- (the valuation is also under dispute); (b) The statement of Shri Karam Chand was recorded on 25-5-1998 in the Customs House premises; after the statement was over, he has stayed overnight and given another statement on 26-5-1998 (there is a dispute whether Shri Karam Chand stayed voluntarily overnight at the Customs House or he was detained forcibly). (c) Shri Karam Chand in his statements, inter alia, submitted that the annual turn over of his firm was around Rs. 40 lacs and his brother Shri Kishan Chand was only a sleeping part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of show cause notice issued, original authority passed orders confiscating the ball bearings and imposing penalty on Shri Karam Chand, Shri Kishan Chand and Shri J.S. Anand. On appeal, the order of the Commissioner was set aside by the Tribunal and the matter was remanded. (g) In the meanwhile, Shri Karam Chand expired. (h) In the de novo proceedings, Commissioner has ordered confiscation of the goods whose value was taken as Rs. 2,50,34,750/-, but allowed to be redeemed on payment of fine of Rs. 50 lacs. He imposed a penalty of Rs. 20 lacs on Shri Kishan Chand and a penalty of Rs. 20 lacs on Shri J.S. Anand. It appears that no appeal has been filed by Shri J.S. Anand. 4.1 Learned advocate, appearing for the appellant, inter alia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot imported the goods, import documents were not with him. He was not specifically asked about the documents regarding procurement of goods locally; (d) All these ball bearings were procured legally from traders like M/s V.K. Traders, M/s Vishwakarma Eng. Works; M/s Goel Bearing Corpn. and payments for the same were made by cheque. He also submitted extracts of ledgers and bank statements which according to him corroborated payments to the tune of Rs.15 lacs paid so far through cheques towards procurement of ball bearings valued about Rs. 27 lacs and the payments have been made. He also submitted that in view of the seizure and confiscation, they could not promptly make payments to various dealers, who supplied the goods; 4.2 In respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not given credence by the Magistrate as could be seen by the fact that he was remanded and the remand was also extended and he was in the jail for about two months. The statement that they were having the purchase documents and they had no occasion to produce the same before the adjudicating authority before he passed the first adjudicating order is not acceptable if it was true that they were having the documents, it is unbelievable that they have chosen not to present before the investigating Officer or before the Magistrate to obtain bail; (c) the ledger and bank statements produced on behalf of the appellant may not deserve to be accepted as out of Rs. 27 lacs, payment was shown to have been made only to the tune of Rs.15 lacs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill health, whether arising out of ill treatment or otherwise. Therefore, we not only do not find corroboration for the statement of Shri Karam Chand, but we also find veracity of the statement has got further diluted because of the timely retraction by Shri Karam Chand. Corroboration, perhaps, could have been obtained if the statement of Shri J.S. Anand, who has supplied the bearings, was recorded. This too has not been done and the Department has missed the opportunities. 6.2 The issues like whether 25,000 numbers of ball bearings could be disposed of in a few days or about 1,50,000 pieces of ball bearings could be purchased in a few days are questions relating to demand and supply and market conditions and we do not propose to deal wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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