Sinder Pal Vs Commissioner of Customs (Delhi High Court)
Summary: Delhi High Court dismissed a writ petition challenging an Order-in-Original imposing a penalty of Rs.3,00,00,000/- under Section 114 of the Customs Act, 1962 and an Order-in-Appeal rejecting the petitioner’s appeal for failure to make the statutory pre-deposit. The dispute arose from a DRI investigation concerning an alleged attempt to export red sanders wood concealed beneath carpets. A container covered by a shipping bill declaring carpets was intercepted on 14.11.2014 and allegedly found to contain 142 logs of red sanders wood weighing approximately 4.43 MT. Searches at premises in Gannaur, Haryana, resulted in further seizures, and statements of various persons as well as the petitioner were recorded under Section 108 of the Act. Following a show cause notice, the adjudicating authority relied upon these statements and other material and imposed the Rs.3 crore penalty.
The petitioner appealed under Section 128 but admittedly did not deposit the requisite 7.5% under Section 129E. The Commissioner (Appeals) consequently rejected the appeal without examining its merits. Before the High Court, the petitioner alleged breach of natural justice because he was denied cross-examination of Sukhwinder Singh, Gurpreet Singh and Chandeep Singh; questioned reliance upon statements in light of Section 138B; contended that his own statement had been recorded while he was in custody and subsequently retracted; disputed the existence of independent evidence connecting him with the exporter or export transaction; questioned confiscation of red sanders recovered beyond the customs area; and pleaded financial hardship in complying with the pre-deposit requirement.
