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Issues:
Whether Customs duty is leviable on goods received as a gift by post from abroad and redeemed on payment of a fine. Analysis: The case involved 20 appeals filed by the Revenue questioning the imposition of Customs duty on goods received as gifts from abroad and redeemed upon payment of a fine. The Asstt. Commissioner had confiscated the goods under Section 111(d) of the Customs Act, but allowed redemption on payment of a fine and penalty. The Commissioner (Appeals) held that no duty of Customs was leviable on bona fide gifts imported by post with a value not exceeding Rs. 5000. The Revenue contended that the exemption under Notification No. 171/93-Cus. was not applicable as the value of the goods exceeded Rs. 2000 and were subject to prohibition. However, both lower authorities had ruled in favor of the respondents, stating that Customs duty was not payable. The Notification No. 171/93-Cus. exempts bona fide gifts from duty if they are free from any prohibition and the value does not exceed Rs. 5000. The Revenue argued that Rule 3(1)(i) of the Foreign Trade Order, 1993, limited the CIF value of goods imported for personal use to Rs. 2000, rendering the exemption inapplicable. The Commissioner (Appeals) found that the goods were not restricted items and their bona fide nature was not in question. Since the value of the goods did not exceed Rs. 5000, no duty was liable as per the Notification. The appeals filed by the Revenue were rejected based on this analysis, upholding the decision that Customs duty was not payable on the gifts received. In conclusion, the Tribunal upheld the decision of the Commissioner (Appeals) and rejected all the appeals filed by the Revenue. The judgment clarified that no duty of Customs was leviable on bona fide gifts imported by post with a value not exceeding Rs. 5000, as per the provisions of Notification No. 171/93-Cus. The case highlighted the importance of compliance with import regulations and the specific conditions for duty exemptions on imported gifts.
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