2011 (1) TMI 74 - HC - Customs

Confiscation - The case of the petitioner is that he was monitored right from the aero bridge and intercepted at the baggage belt and thus prevented from approaching the Red Channel Counter to declare the goods and to pay the duty - Department of Customs, to the contrary is that the petitioner had not declared the said goods - He has agreed the government order to pay the redemption fine on 10th January, 2006 of Rs. 53,55,688/- @ 55% of the gold value - What has prompted the petitioner to file the present petition is the fact that he has been acquitted in the criminal prosecution - Criminal prosecution is different hence no merit is found on the present case and the same is dismissed

Summary

Issues:
1. Service of show cause notice for confiscation of goods and penalty under the Customs Act, 1962.
2. Confiscation of gold and personal goods from a Non-Resident Indian.
3. Legal proceedings regarding the confiscation and penalty imposed.
4. Allegations of not being served with the show cause notice and authorization of an advocate.
5. Compliance with orders, payment of redemption fine, and criminal prosecution acquittal prompting the filing of the petition.

Analysis:
1. The petitioner, a Non-Resident Indian, contested the service of a show cause notice dated 24th March, 1998, related to the confiscation of gold and personal goods under Sections 111(d), 111(l) of the Customs Act, 1962, and the imposition of a penalty under Section 112(a)(b) of the Act. The petitioner claimed that he was not served with the notice and had not authorized his advocate to respond on his behalf.

2. The petitioner, settled in Dubai since 1959, was found with gold biscuits and miscellaneous goods upon arrival at IGIA Airport, Delhi in 1997. The petitioner alleged being prevented from declaring the goods at the Red Channel Counter by customs officials, while the Department of Customs contended that the goods were undeclared.

3. Legal proceedings ensued, leading to the absolute confiscation of gold biscuits and misc. goods, with an option for redemption upon payment of a fine. The petitioner's appeal and revision were unsuccessful, with the Central Government modifying the redemption fine amount but upholding the personal penalty imposed under the Act.

4. The High Court dismissed the petitioner's contention of not being served with the show cause notice, citing the advocate's response to the notice and the petitioner's compliance with subsequent orders. The petitioner's failure to challenge the Central Government's order until 2011, coupled with the acquittal in a criminal prosecution, was deemed insufficient grounds for the petition.

5. The Court emphasized the finality of the proceedings under the Customs Act, with the petitioner having paid the penalty and redemption fine in 2006. The acquittal in the criminal case was distinguished from the customs proceedings, highlighting the different legal standards and procedures applicable. Ultimately, the Court found no merit in the petition and dismissed it promptly.