Dharanidhar Ghosh Vs Commissioner of Customs (Preventive) (CESTAT Kolkata)
The appeal before the Tribunal concerned the imposition of a penalty of ₹50 lakh on the appellant under Section 112(b) of the Customs Act, 1962, by the Commissioner of Customs (Preventive), West Bengal. The penalty arose from an incident dated 05.10.2016, when DRI officers apprehended one Ratan Biswas at Sealdah Railway Station and recovered 33 foreign-marked gold biscuits weighing 3632.140 grams from his possession. He was apprehended on the belief that the gold was being transported without valid documents. In his statement, Ratan Biswas named the appellant as the person who allegedly handed over the gold for delivery to another individual at Burrabazar.
Based on this statement, searches were conducted at the appellant’s residence on 21.10.2016 by the Krishnanagar Customs Division and again on 09.03.2017 by DRI, Kolkata. On both occasions, no incriminating material was found. The appellant’s wife produced all required documents during the search. A show cause notice dated 30.03.2017 proposed confiscation of the seized gold from Ratan Biswas and imposition of penalty on the appellant, alleging conscious involvement in smuggling.
During adjudication, the appellant sought cross-examination of Ratan Biswas, which was initially denied, and an adjudication order dated 22.09.2017 imposed a ₹50 lakh penalty on the appellant. This order was set aside by the Calcutta High Court on 30.04.2018, with liberty to proceed afresh. In de novo proceedings, cross-examination of Ratan Biswas was conducted on 14.12.2021, where he reiterated his earlier statement. A fresh adjudication order dated 28.01.2022 again imposed a penalty of ₹50 lakh under Section 112(b), leading to the present appeal.
