2004 (2) TMI 505 - AT - Customs

Summary

Issues:
- Appeal against order-in-appeal confirming confiscation of goods of foreign origin and imposition of penalty.
- Confiscation of compressors and other goods seized from workshop.
- Justification of absolute confiscation and imposition of penalty.
- Validity of seizure and confiscation of goods with foreign markings.
- Application of CEGAT judgment in similar cases.
- Modification of absolute confiscation to redemption with fine.

Analysis:
The appeal was directed against the order-in-appeal by the Commissioner (Appeals) that upheld the absolute confiscation of certain goods of foreign origin seized from the workshop, along with a penalty of Rs. 30,000 imposed. The Customs officers seized 2 compressors and components of car air-conditioners of foreign make in 1990. These compressors were part of smuggled goods cleared as unaccompanied baggage at an under-declared value. The appellant claimed innocence, stating they bought the compressors believing them to be valid imports. The adjudication order lacked evidence of the appellants' knowledge of the goods' smuggled nature, leading to the conclusion that no penalty could be imposed.

Regarding the confiscation of compressors, their link to smuggling through clearance as unaccompanied baggage justified confiscation, but absolute confiscation was deemed unjustified as the goods were not prohibited. The order of absolute confiscation was set aside, and the appellants were given the chance to pay a redemption fine. The seizure of other goods with foreign markings was found unjustified, as the burden of proof lay with the department to show illegal importation, not on the appellants to prove lawful importation. Citing a CEGAT judgment, the confiscation of the remaining items seized from the workshop was deemed without legal authority and set aside.

Consequently, the appeal was allowed for all items except the compressors purchased from a specific individual. The absolute confiscation of these compressors was modified to confiscation with an option for redemption upon payment of a fine of Rs. 1,000. The lower authorities' orders were modified accordingly, partially allowing the appeal in these terms.