2008 (8) TMI 647 - AT - Customs

Summary

Issues:
1. Allegation of goods being of foreign origin.
2. Justification of seizure and confiscation.
3. Application of cited case law.
4. Nature of seized goods.
5. Consideration of circumstances for a lenient approach.
6. Determination of redemption fine and penalty reduction.

Analysis:

1. The case involved an allegation regarding the foreign origin of the impugned goods. The Appellant argued that since the Department failed to prove the foreign origin of the goods, the seizure, confiscation, and penal action were unjustified. The Appellant contended that the impugned goods were for local sale, and the Department did not establish their foreign origin.

2. The Departmental Representative highlighted that the seized goods were alleged to be of Bangladeshi origin, including scrap, coins, and medals. The circumstances, such as the goods being carried at night and the evasive actions of the truck's driver and cleaner upon detection by Customs Authorities, indicated a contraband nature. The lower appellate Authority correctly determined that the cited case law did not apply to the present situation.

3. The Tribunal considered the submissions from both sides and acknowledged the decision of the Hon'ble Calcutta High Court in a similar case where the Department failed to prove the foreign origin of the goods. However, in the present case, the Department alleged Bangladeshi origin based on the nature of the seized goods, leading to a different conclusion.

4. Despite the contraband nature of the seized goods, the Tribunal recognized that the Appellants had no prior offenses and thus adopted a lenient approach. The Tribunal deemed absolute confiscation impractical due to the nature of the goods and ordered the release of the impugned goods upon payment of a redemption fine amounting to 25% of the seizure value.

5. In addition to the redemption fine, the Tribunal reduced the redemption fine on the seized vehicle and the penalty imposed on the four Appellants. The redemption fine on the seized vehicle was reduced from Rs. 1,00,000 to Rs. 75,000, and the penalty on each Appellant was reduced to Rs. 15,000. The Tribunal partially allowed the Appeals and disposed of all Stay Petitions accordingly.