2005 (6) TMI 364 - AT - Customs

Summary

Issues:
1. Confiscation of goods (Fertilizers & Pesticides) seized from tractor trolley in godown.
2. Imposition of penalty on the Appellants.

Analysis:
1. The judgment addresses the issue of the confiscation of goods (Fertilizers & Pesticides) seized from a tractor trolley in a godown. The Customs officers intercepted a tractor and trolley carrying the goods near the Nepal border, suspecting an intent to export. However, it was found that there was no legal prohibition on storing these goods in the godown, and they were not declared as prohibited goods requiring a license for storage. The belief of the Customs officers that the goods were meant for export was deemed unreasonable, given the location of the godown. The judgment concluded that the confiscation of goods from the godown and the penalty imposed could not be sustained, as no legal basis existed for the actions taken by the authorities. The Order-in-Appeal regarding the confiscation of goods from the godown was set aside, and the goods were ordered to be released unconditionally.

2. The judgment also addresses the imposition of a penalty on the Appellants under Section 114 of the Customs Act. Since the confiscation of goods from both the godown and the tractor trolley was found to be unjustified, the penalty against the Appellants could not be sustained. Therefore, the impugned Order imposing penalties was set aside in its entirety. The Appellants were granted relief, and the tractor and trolley were ordered to be released unconditionally. The judgment provided consequential relief to the Appellants in accordance with the law.