2005 (4) TMI 361 - AT - Central Excise

Summary

Issues:
- Stay application by Revenue regarding duty consumption on imported goods as bona fide baggage under Notification No. 137/90-Cus.

Analysis:
The case involved a stay application by the Revenue concerning the duty consumption on goods imported as bona fide baggage under Notification No. 137/90-Cus. The Commissioner (Appeals) had to determine whether the goods imported by the respondents qualified as bona fide baggage for duty-free clearance. The Revenue argued that the goods brought as baggage were not genuinely the passenger's baggage, citing Clause 8(1) of the Baggage Rules, which allows duty-free clearance for bona fide baggage only. The department contended that the passenger, who was not financially well off in Dubai, could not have acquired the expensive electronic items and goods in question.

The Tribunal, comprising Ms. Jyoti Balasundaram and Shri Moheb Ali M., heard both sides and addressed a preliminary objection raised by the respondents' advocate regarding the maintainability of the appeal. The advocate argued that as the Commissioner was the appellant, the appeal lacked a review order against the Commissioner (Appeals)'s decision. However, the Tribunal rejected this objection, clarifying that the Commissioner was indeed the appellant in this instance. The Tribunal proceeded to evaluate the stay application, considering that the impugned goods were in the possession of the passenger before departing for India. Notably, the Tribunal emphasized that ownership of the goods did not determine eligibility for duty concession. Consequently, the Tribunal found no prima facie case to stay the lower appellate authority's order and rejected the application for stay.

In conclusion, the Tribunal's decision centered on the lack of a prima facie case for granting a stay on the order of the Commissioner (Appeals) regarding the duty consumption on goods imported as baggage. The Tribunal's ruling highlighted the importance of establishing whether imported goods qualified as bona fide baggage for duty-free clearance under the relevant customs notification, ultimately leading to the rejection of the Revenue's stay application.