2004 (12) TMI 532 - AT - Customs

Summary

Issues:
Confiscation of gold jewellery and foreign currency under Customs Act and Foreign Exchange Regulation Act, retraction of statement by the appellant, declaration of goods before Customs, redemption of confiscated items, imposition of penalty.

Confiscation of Gold Jewellery and Foreign Currency:
The appellant, a Sri Lankan national, was intercepted with gold jewellery and foreign currency by DRI officers. The jewellery and currency were found in his possession without proper declaration. The appellant initially claimed the items belonged to another person for a consideration but later retracted, stating they were for personal use. The Tribunal upheld the confiscation of the jewellery and foreign currency due to lack of proper documentation and attempted smuggling.

Retraction of Statement and Declaration of Goods:
The appellant's retraction of the initial statement regarding ownership of the goods was deemed an afterthought by the authorities. The failure to declare the gold jewellery and foreign currency before Customs, along with the absence of proof of lawful possession, supported the decision to confiscate the items.

Redemption of Confiscated Items:
While absolute confiscation of the foreign currency was upheld, the Tribunal directed the Commissioner to offer the appellant an option to redeem the gold jewellery and hair clips upon payment of a fine. The amount of the fine was to be determined by the Commissioner after providing the appellant with a fair hearing within three months.

Imposition of Penalty:
The penalty of Rs. 15,000 imposed on the appellant was upheld as it was not contested significantly. The Tribunal sustained the penalty in line with the impugned order.

In conclusion, the Tribunal modified the impugned order by allowing redemption of the gold jewellery and hair clips upon payment of a fine, upholding the confiscation of the foreign currency, and sustaining the penalty imposed on the appellant. The decision aimed to balance enforcement of customs and foreign exchange regulations with providing the appellant an opportunity for redemption within the legal framework.