2001 (1) TMI 803 - AT - Customs

Summary

Issues: Smuggling of gold bars, violation of Customs Act, confiscation of gold bars, imposition of penalty

Smuggling of Gold Bars:
The case involved the interception of family members arriving from Abudhabi at the Sahara International Airport in Bombay, where customs officers discovered gold bars concealed in various items worn by the family members. The gold bars collectively weighed 20638.2 grams and had foreign markings, indicating their smuggled nature. The Customs Act provisions deemed the import of gold without a valid permit illegal, leading to the confiscation of the gold bars under the Act.

Violation of Customs Act:
The family members failed to produce any evidence of legal import or acquisition of the gold bars, making them liable for confiscation under sections 111(d), 111(f)(l), and 111(m) of the Customs Act. The concealment, non-declaration, and misdeclaration of the gold bars, along with the items used for concealing them, rendered the family members in violation of the Customs Act. They were also found to be involved in the smuggling of the gold bars, leading to penal action under section 112 of the Customs Act.

Confiscation of Gold Bars:
Following a show cause notice and personal hearings, the Additional Collector of Customs passed an order confiscating 177 gold bars and imposing a penalty of Rs. 25 lakhs each on the appellant and her husband under section 112 of the Customs Act. The appellant challenged this order through an appeal, arguing that she was unaware of the consequences and had followed her husband's instructions.

Imposition of Penalty:
The appellant presented written submissions stating her financial difficulties and the circumstances leading to the smuggling of gold bars. The tribunal considered the appellant's arguments, financial condition, and the suffering she had undergone. Consequently, the penalty imposed under the impugned order was reduced from Rs. 2,50,000/- to Rs. 50,000/-. The rest of the impugned order regarding the confiscation of gold bars was confirmed.

In conclusion, the tribunal partially allowed the appeal, reducing the penalty imposed on the appellant while confirming the confiscation of the gold bars. The judgment highlighted the seriousness of smuggling activities and the legal consequences under the Customs Act, emphasizing the need for compliance with import regulations and the severe penalties for violations.