{"id":149236,"date":"2001-11-20T00:00:00","date_gmt":"2001-11-19T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/kuwait-airways-corporation-vs-commissioner-of-customs-on-20-november-2001"},"modified":"2015-08-15T00:50:24","modified_gmt":"2015-08-14T19:20:24","slug":"kuwait-airways-corporation-vs-commissioner-of-customs-on-20-november-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/kuwait-airways-corporation-vs-commissioner-of-customs-on-20-november-2001","title":{"rendered":"Kuwait Airways Corporation vs Commissioner Of Customs, &#8230; on 20 November, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Mumbai<\/div>\n<div class=\"doc_title\">Kuwait Airways Corporation vs Commissioner Of Customs, &#8230; on 20 November, 2001<\/div>\n<div class=\"doc_bench\">Bench: S T Gowri, G Srinivasan<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> Gowri Shankar, Member (Technical)  <\/p>\n<p> 1. The application is for waiver of deposit of penalty imposed on the<br \/>\napplicant under Section 112 of the Act of Rs. 50 lakhs. Penalty has been<br \/>\nimposed following the finding of the Commissioner in his order impugned<br \/>\nin the appeal that the applicant was involved in the smuggling of foreign<br \/>\nexchange amount equivalent to Rs. 1.14 crores by Yousef Al-Loughani, at<br \/>\nthe relevant time was functioning as a security officer of the applicant.\n<\/p>\n<p> 2. We find this explanation  prima facie   extremely difficult to accept.<br \/>\nDuring the course of the hearing in order to clarify the matter, we asked for<br \/>\naffidavit of the chief executive of the applicant, and received an affidavit of<br \/>\nDirector General of Kuwait Airways. In this affidavit, the Director General<br \/>\nexplains that Al-Loughani was the security officer of the Ministry of<br \/>\nInterior of the Government of Kuwait and the Al-Loughani was<br \/>\nperforming the function as security officer at Mumbai in that capacity.<br \/>\nHowever this was not the version that the company gave to the customs<br \/>\ndepartment. It did not at any stage disclose that Al-Loughani was not its<br \/>\nemployee. Even subsequent to the seizure of the currency when this<br \/>\nstatement under Section 108 of the Act was recorded. Al-Rasheedi, station<br \/>\nmanager of the Kuwait Airways at Mumbai had said that Al-Loughani was<br \/>\nworking as a security officer. It was only in a reply to the show cause<br \/>\nnotice the fact of his not being an employee was brought to the department.<br \/>\nNor does the counsel for the applicant denies that the security pass which<br \/>\nwas issued to Al-Loughani gave him access to the operational area of the<br \/>\nairport was as a result of the effort made by the airlines which had given<br \/>\nhim a staff identity card and all along held him to be an employee.\n<\/p>\n<p> 4. The position that emerges is that Al-Loughani (and it appears three<br \/>\nother persons) who were working for the in Mumbai for the Ministry of<br \/>\nInterior of Kuwait were masquerading as officers of the Kuwait Airways.<br \/>\nIt was also accepted by the counsel for the applicant, after consulting his<br \/>\nclient, that none of the officials of Kuwait Airways, upto its Director<br \/>\nGeneral, who was the chief operating officer had any control over the<br \/>\nperson. We have thus a situation in which Al-Loughani and three other<br \/>\npersons who had access to every area of the airport and had authority to<br \/>\nclear baggage having been checked by the airlines, who were not<br \/>\nemployees of the airlines over whom the highest officer of the airlines had<br \/>\nno control. It is also accepted by the counsel for the applicant that this state<br \/>\nof affairs appears has been continuing for the past seven years. During the<br \/>\nseven years, it seems doubtful that any department of the Central or State<br \/>\ngovernment was kept informed of the true identity of these persons.  Prima<br \/>\nfacie  therefore it is the attitude and the conduct of the airline that provide a<br \/>\nfertile field for the activities of Al-Loughani and it is debatable whether<br \/>\nwithout the cloak of the security and false identity and facilities including<br \/>\ncar and housing provided by the Kuwait Airways, Al-loughani would have<br \/>\nbeen able to continue his activities.\n<\/p>\n<p> 5. At the same time, we note the contention that the counsel for the<br \/>\napplicant makes that, notwithstanding these gross and continuing lapses on<br \/>\nthe part of the airlines, it had not been established that the airline was party<br \/>\nto, or had knowledge of these smuggling that Al-loughani undertook. We<br \/>\nalso note the submission he makes that subsequent to the event of<br \/>\n11.9.2001, airline traffic all over the world has considerably reduced and<br \/>\nthee has been retrenchment almost 80% of its staff at Mumbai.\n<\/p>\n<p> 6. Taking these aspects into account, we consider a deposit by the<br \/>\napplicant of Rs. 20 lakhs to be appropriate. On such deposit being made<br \/>\nwithin a month of this order, we waive deposit of the remaining penalty and<br \/>\nstay its recovery.\n<\/p>\n<p> 7. Compliance on 20.12.2001.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Mumbai Kuwait Airways Corporation vs Commissioner Of Customs, &#8230; on 20 November, 2001 Bench: S T Gowri, G Srinivasan JUDGMENT Gowri Shankar, Member (Technical) 1. The application is for waiver of deposit of penalty imposed on the applicant under Section 112 of the Act of Rs. 50 lakhs. Penalty [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-149236","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Kuwait Airways Corporation vs Commissioner Of Customs, ... on 20 November, 2001 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/kuwait-airways-corporation-vs-commissioner-of-customs-on-20-november-2001\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kuwait Airways Corporation vs Commissioner Of Customs, ... on 20 November, 2001 - Free Judgements of Supreme Court &amp; 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