Principal Commissioner of Customs Vs Kishan Manjibhai Gadhesariya (Gujarat High Court)
The Gujarat High Court considered Revenue’s appeals under Section 130 of the Customs Act, 1962 against the CESTAT order dated 1 October 2019, which had set aside penalties imposed on Sanjay Manjibhai Gadhesariya and Kishanbhai Manjibhai Gadhesariya. The case arose from DRI action concerning a 25 kg consignment transported from Aurangabad to Vapi under documents describing the goods as “Benzahydrol Powder”. Samples sent to the Forensic Science Laboratory, Surat, were found to contain Ketamine Hydrochloride. The Revenue alleged that approximately 165 kg of Ketamine had previously been exported and that the seized 25 kg consignment was also intended for export. The Commissioner had ordered absolute confiscation of the 25 kg consignment, held the 165 kg already exported liable to confiscation under Section 113(d), and imposed penalties of ₹50 lakh on Sanjay, ₹5 lakh on Kishan and ₹10 lakh on Rajesh Joshi under Section 114(i).
The CESTAT had allowed the appeals, observing that the evidence did not establish when or how the alleged 165 kg had been exported and that there were no shipping or airway bills connecting the respondents with the alleged exports. It also considered the retraction of Sanjay’s statement and held that the evidence did not establish an attempt to export the seized 25 kg. Before the High Court, the Revenue submitted that the Tribunal had overlooked statements recorded under Section 108, electronic evidence, international dispatch details and other material demonstrating the respondents’ involvement. The respondents contended that the Tribunal’s findings were factual and plausible, that the Section 108 statements had been retracted, and that there was insufficient evidence of export or attempted export.
