2014 (5) TMI 1091 - CGOVT - Customs

Revision application under Section 129DD of Customs Act, 1962 - Confiscation of non bona fide baggage and commercial in nature - Imported in violation of provisions of the Customs Act, 1962, Foreign Trade Policy 2009-14 - As per provision of Baggage Rules 1998, the applicant is entitled to get full free allowance which has been denied - Appellant contended that one electronic keyboard PA50SD Brand Korg is overvalued and requested to assess its value as per invoice issued at Singapore mentioning the value as Singapore dollars 784 INR 35,035 - Held that - the documentary evidence submitted by applicant is quite convincing and therefore its value is accepted as ₹ 35,050/-. One key board cannot be treated as commercial in nature. So, said item may be allowed in baggage free allowance as per his entitlement under baggage rules by charging duty on value in excess of free allowance. Revision application under Section 129DD of Customs Act, 1962 - Confiscation of non bona fide baggage and commercial in nature - Imported in violation of provisions of the Customs Act, 1962, Foreign Trade Policy 2009-14 - As per provision of Baggage Rules 1998, the applicant is entitled to get full free allowance which has been denied - Appellant contended that black label whisky was overvalued @ 6000/- per litre bottle whereas its value is only ₹ 1,000/- per bottle - Held that - this contention of applicant merits acceptance and therefore the black label whisky one litre bottle is to be valued @ ₹ 2,085/-. Since applicant passenger is eligible to import two litre of whisky duty free in terms the baggage rules, the two litre whisky is allowed to be cleared duty free as per his entitlement in terms of Baggage Rules. The value of 4 bottles works out to ₹ 2,085 x 4 8,340/- and duty may be charged accordingly. - Revision application disposed of

Summary

Issues:
1. Valuation of goods brought by the applicant and confiscation for violations.
2. Appeal against the Order-in-Original and modification by the Commissioner (Appeals).
3. Revision application filed before Central Government challenging the Order-in-Appeal.
4. Grounds for revision application including valuation, redemption fine, and personal penalty.
5. Government's analysis of the case records, submissions, and orders.
6. Decision on the revision application and modification of the impugned order.

Analysis:
1. The case involved the interception and examination of baggage brought by the applicant from Singapore, leading to the discovery of commercial goods valued at Rs. 3,28,000. The Assistant Commissioner confiscated the goods for violations of Customs Act and Foreign Trade Policy, imposing a fine and penalty. The Commissioner (Appeals) later reduced the redemption fine and personal penalty.

2. The applicant challenged the Order-in-Appeal before the Central Government, arguing for full free allowance under Baggage Rules and disputing the valuation of goods by DRI officers. The applicant sought revaluation based on purchase invoices and current valuation rules, claiming the goods were not prohibited or restricted items.

3. The Central Government reviewed the case records and submissions, focusing on the valuation of specific items like electronic keyboard and black label whisky. The Government accepted the applicant's contentions regarding the valuation of these items, allowing the electronic keyboard and two liters of whisky to be cleared duty-free.

4. The Government found the redemption fine and penalty imposed by lower authorities reasonable and declined to interfere with them. The revision application was disposed of, modifying the impugned order to reflect the revised valuation of goods and clearance of duty-free items.

5. The Central Government's decision highlighted the acceptance of the applicant's valuation evidence for specific items, leading to adjustments in the duty calculation. The Government emphasized adherence to Baggage Rules and proper valuation methods in determining the duty liability for imported goods.

6. In conclusion, the revision application was resolved by the Central Government, ordering the clearance of specific items duty-free based on revised valuations and maintaining the imposed redemption fine and personal penalty as reasonable measures in line with Customs regulations.