2007 (12) TMI 344 - AT - Customs

Summary

Issues:
1. Appeal against absolute confiscation of war material/explosives concealed in containers by heavy melting scrap.
2. Reduction of fine imposed on goods other than war material/explosives.
3. Interpretation of Section 119 of the Customs Act, 1962 regarding confiscation.

Analysis:
1. The Revenue appealed against the orders upholding the absolute confiscation of war material/explosives concealed in containers by heavy melting scrap. The contention was that even the heavy melting scrap should be absolutely confiscated as per Section 119 of the Customs Act. The argument was made to enhance the fine imposed on the goods other than war material/explosives. However, the Tribunal found no merit in the submission that Section 119 provides for absolute confiscation of all goods used for concealing smuggled goods. The Tribunal upheld the finding that goods other than war material/explosives are liable to confiscation but can be redeemed on payment of a fine. The Tribunal distinguished previous decisions where physical concealment of prohibited goods was not present, unlike in the current case.

2. The Tribunal considered the previous decisions cited by the importers' counsel regarding the heavy melting scrap not being liable to confiscation. In those cases, it was noted that there was no physical concealment of prohibited goods. However, in the present case, the authorities found that heavy melting scrap was used to conceal war material/explosives. Therefore, the Tribunal upheld the confiscation of heavy melting scrap with an option for redemption upon payment of a fine. The penalty imposed was also upheld without any grounds for enhancement.

3. In conclusion, the Tribunal rejected the appeals filed by the Revenue and disposed of the cross-objections. The Tribunal clarified the interpretation of Section 119 of the Customs Act, emphasizing that the provision does not mandate absolute confiscation of all goods used for concealing smuggled goods. The decision was based on the specific circumstances of the case where heavy melting scrap was used to conceal war material/explosives, leading to confiscation with an option for redemption and maintaining the penalty imposed by the adjudicating authority.