2011 (6) TMI 554 - AT - Customs

Confiscation of goods - goods seized on the ground that they have violated Copyright Act 1957 - Counsel submitted that allegations made against them are regarding infringement of provisions of Section 51 (a) & (b) of Indian Copyright Act, 1957 and 11(2) (n) & (u) of the Customs Act,1962 read with Section 113(d) of Customs Act, 1962. The contention is that the said provisions relates to import of goods. Section 53 of Copyright Act, 1957 also relates importation of infringing copies Held that - provisions of law invoked in this case i.e Section 51(a) & (b) of the Copyright Act, 1957 and the notification issued under the provisions of Section 11 (2) (n) & (u) relates to goods which are prohibited to be imported issued under Section 53 of the Copyright Act, 1957 which also relates to importation of infringing copies. The department could not produce anything contrary to the above. Commissioner s order is not sustainable in law. The same is set aside and the appeals is allowed.

Summary

Issues:
Violation of Copyright Act and Customs Act, confiscation of goods, imposition of fines and penalties.

Detailed Analysis:

1. Confiscation and Penalties: The case involved an appeal against an order confiscating goods valued at Rs.11,33,000 and imposing fines and penalties under the Customs Act, 1962. The Ld. Commissioner confiscated the goods but allowed redemption on payment of a fine. Additionally, penalties were imposed on both the exporter and a partner of the exporter under Section 114(i) of the Customs Act. The main contention was regarding the violation of provisions of the Indian Copyright Act, 1957, and Customs Act, 1962.

2. Allegations and Provisions: The Ld. Counsel argued that the allegations pertained to the infringement of provisions of Section 51(a) & (b) of the Indian Copyright Act, 1957, and Section 11(2) (n) & (u) of the Customs Act, 1962, along with Section 113(d) of the Customs Act. These provisions relate to the importation of goods and the protection of copyrights, trademarks, and prevention of contravention of laws.

3. Legal Interpretation: The judgment highlighted the relevant sections of the Copyright Act and Customs Act invoked in the case. Section 51 of the Copyright Act defines when copyright is infringed, including actions like making for sale, distribution, or importation without proper authorization. Section 11(2) (n) & (u) of the Customs Act focuses on the protection of patents, trademarks, copyrights, and prevention of contravention of laws.

4. Analysis of Confiscation: The Tribunal analyzed the facts of the case, where out of a total consignment of printed books, some were marked 'For sale in India, Pakistan, Bangladesh, Nepal, and Sri Lanka only.' These books, valued at Rs.11,33,000, were confiscated for contravening copyright and Customs Act provisions related to importation. The judgment emphasized that the invoked provisions were applicable to goods prohibited for import, as per Section 53 of the Copyright Act.

5. Decision and Legal Ruling: After considering the submissions and perusing the records, the Tribunal found that the Commissioner's order was not legally sustainable. The judgment set aside the confiscation and penalties imposed, ultimately allowing the appeals. The ruling was based on the lack of evidence contrary to the legal provisions invoked and the incorrect application of the law in the Commissioner's order.

In conclusion, the judgment provided a detailed analysis of the legal provisions, facts of the case, and the reasoning behind setting aside the confiscation and penalties imposed under the Customs Act for violating copyright laws.