2014 (12) TMI 727 - CGOVT - Customs

Free baggage allowance - Confiscation of one LCD TV and two litre whisky - One Laptop valuing ₹ 38,300 allowed as free baggage - Attempt to smuggle goods - Repeat offender - Imposition of redemption fine and penalty - Held that - free baggage allowance is admissible to the applicants. Applicants are entitled for duty free clearance of 2 litres of whisky as per baggage rules. So, the confiscation of one LCD TV and two litre whisky is set aside and same may be allowed to be cleared in free baggage allowance after charging duty on value of goods which is in excess of free baggage allowance of ₹ 25,000/-. The remaining goods i.e. one TV, one litre whisky and 2 Sony FM/AM clock Radio totally valuing ₹ 32,666/- being non-bona fide baggage are liable to confiscation. As such the confiscation of goods valuing ₹ 32,666/- is upheld. The redemption fine and penalty is therefore modified keeping in view the value of confiscated goods - Decided partly in favour of assessee.

Summary

Issues Involved:
1. Confiscation of goods under Section 111(d) of the Customs Act, 1962.
2. Imposition of redemption fine and personal penalty under Sections 125 and 112 of the Customs Act, 1962.
3. Admissibility of free baggage allowance under Baggage Rules, 1998.
4. Condonation of delay in filing revision applications.

Issue-wise Detailed Analysis:

1. Confiscation of Goods under Section 111(d) of the Customs Act, 1962:
The applicants arrived at Chhatrapati Shivaji International Airport, Mumbai, and declared goods in their baggage at the Red Channel. The goods included electronic items and whisky, valued at Rs. 1,04,300/-. The Deputy Commissioner of Customs confiscated goods valued at Rs. 66,000/- under Section 111(d) of the Customs Act, 1962, allowing the applicants to redeem the goods on a fine of Rs. 14,000/- and imposed a penalty of Rs. 10,000/- under Section 112 of the Customs Act, 1962. One Mac Book Pro Laptop was allowed free of duty in each case. The applicants appealed against the confiscation, but the Commissioner (Appeals) rejected their appeals.

2. Imposition of Redemption Fine and Personal Penalty under Sections 125 and 112 of the Customs Act, 1962:
The Deputy Commissioner imposed a redemption fine of Rs. 14,000/- and a personal penalty of Rs. 10,000/- on the applicants. The applicants contended that the fine and penalty were harsh despite their true declaration of goods. Upon revision, the Government observed that the goods included 3 Black Label Whisky, one Mac Book Pro (Laptop), 2 Sony Bravia 32E/520 (LCD TV), and 2 Sony FM/AM Clock Radio. The adjudicating authority allowed one laptop duty-free but confiscated the remaining goods. The Government modified the redemption fine to Rs. 8,000/- and the penalty to Rs. 5,000/- for each applicant, considering the value of confiscated goods.

3. Admissibility of Free Baggage Allowance under Baggage Rules, 1998:
The applicants argued that the goods were for personal use, not commercial quantity, and requested a baggage allowance of Rs. 25,000/-. The Government noted that one LCD TV and 2 litres of whisky could not be treated as commercial quantities. C.B.E. & C. Circular No. 64/96-Cus., VI, dated 17-12-1996, clarified that the portion of baggage not in commercial quantity is eligible for free baggage allowance. Consequently, the Government allowed duty-free clearance of one LCD TV and 2 litres of whisky, charging duty on the value of goods exceeding the Rs. 25,000/- allowance. The remaining goods, valued at Rs. 32,666/-, were liable to confiscation.

4. Condonation of Delay in Filing Revision Applications:
The revision applications were filed on 1-8-2013 against the order-in-appeal dated 14-2-2013, received on 22-2-2013, resulting in a delay of 2 months and 10 days. The applicants cited personal problems and domestic difficulties for the delay. The Government, following the Supreme Court judgment in Collector Land Acquisition, Anantnag v. Mst. Katiji, condoned the delay, adopting a liberal approach as the delay was within the permissible limit of three months under Section 129DD(2) of the Customs Act, 1962.

Conclusion:
The Government modified the impugned orders, reducing the redemption fine to Rs. 8,000/- and the penalty to Rs. 5,000/- for each applicant. The applicants were granted free baggage allowance for one LCD TV and 2 litres of whisky, with the remaining goods valued at Rs. 32,666/- being confiscated. The revision applications were disposed of accordingly, with appropriate customs duty payable on the goods.