2007 (3) TMI 596 - AT - Customs

Summary

Issues involved:
The issues involved in this case are the confiscation of gold bars of foreign origin, a Maruti car, and penalties imposed under various sections of the Customs Act, 1962.

Confiscation of Gold Bars:
The case involved the confiscation of 100 gold bars of foreign origin under Section 111(d) and (e) of the Customs Act, 1962. The gold bars were seized by the police and handed over to the Customs officers along with a Maruti car and two cellphones. The appellants argued that the gold bars had not been legally seized and that the adjudicating authority had misread the evidence regarding the legal importation of the gold bars. However, the Tribunal found that once the gold bars were found to be not licitly acquired, their confiscation and penalties imposed were legal, citing a previous Supreme Court ruling.

Confiscation of Maruti Car and Cellphones:
The Maruti car and two cellphones were also confiscated under different sections of the Customs Act. The appellants claimed that the confiscation was illegal, but the Tribunal upheld the confiscation of the car and cellphones.

Penalties Imposed:
Penalties were imposed on the appellants under Section 112(b) of the Customs Act. The appellants argued that the penalties were excessive and should be reduced. The Tribunal agreed that the penalties needed to be reduced to reasonable levels and allowed for the redemption of the confiscated articles upon payment of a reasonable redemption fine. The Tribunal noted that in previous cases, redemption of confiscated gold bars of foreign origin and reduction of penalties had been allowed.

Conclusion:
The Tribunal, after considering the arguments and case records, allowed the appeals by way of remand. The penalties imposed were reduced to reasonable levels, and the articles confiscated were allowed to be redeemed by the persons from whom they had been seized or their owners. The decision was pronounced in open court on 17-3-2007.