2010 (5) TMI 620 - CGOVT - Customs

Re-export of Imported goods - Assessee imported 6 kg Saffron - Held that - It cannot be constituted as bonafide baggage, further import of good (in commercial quantity) through banafide baggage is not permissible - In view of Mohd. Ramzan (1994 -TMI - 49180 - GOVERNMENT OF INDIA, held that re-export can be granted after redemption u/s 125 and payment of fine..

Summary

Issues:
1. Confiscation of impugned goods under Customs Act, 1962.
2. Imposition of penalty under Customs Act, 1962.
3. Request for re-export of goods under Section 125 of the Customs Act.
4. Valuation of impugned goods.
5. Reduction of personal penalty.

Analysis:
1. The judgment pertains to a case where an individual arrived at IGI Airport and was found with Saffron weighing 6 Kg, valued at Rs. 12,00,000, which did not constitute bona fide baggage. The impugned goods were confiscated under Section 111(d) of the Customs Act, 1962. The adjudicating authority allowed redemption of goods under Section 125 of the Act on payment of a specified amount and imposed a penalty under Section 112 of the Act.

2. The applicant appealed the original order, which was rejected by the Commissioner (Appeal). Subsequently, a revision application was filed before the Central Government under Section 129 DD of the Customs Act. The applicant argued that he was unaware of Customs Rules, requested re-export of goods, and challenged the high valuation placed on the goods.

3. The Central Government reviewed the case records and noted that the imported Saffron was a commercial quantity, not part of bona fide baggage, and violated trade quantity import regulations. Despite the applicant's claim of high valuation, no evidence was presented to support it. The Government decided to permit re-export of the goods under Section 125 of the Act upon payment of the redemption fine within 30 days, reducing the personal penalty imposed.

4. The Government acknowledged the applicant's plea for re-export based on precedents and judgments, emphasizing the option under Section 125 even for undeclared goods, subject to fines and penalties. The judgment modified the impugned order to allow re-export of the goods and reduced the personal penalty to Rs. 60,000, adjusting the excess penalty towards the re-export fine.

5. In conclusion, the revision application was disposed of by permitting re-export of the impugned goods under Section 125 of the Customs Act, 1962, with a reduced personal penalty. The judgment highlighted the importance of complying with Customs regulations, valuation accuracy, and the option for re-export under specified conditions.