2016 (7) TMI 144 - CGOVT - Customs

Smuggling - Import of gold / gold jewellery - passing through green channel - benefit of free allowance as per baggage rules denied - applicant had not declared the impugned gold - redemption fine and penalty - the main contention of the applicant for revision is that the respondent failed to see the true declaration made by the applicant on reporting at red channel before the concerned Customs officers at airport and nothing was concealed nor misdeclared by the applicant. Applicant had no past record of offense and she brought the goods not for trading but as gifts for relatives and friends. Held that - Applicant failed to prove its contention - in view of the facts and circumstances of the case penalty under Section 112(a) of the Act has been rightly imposed on the applicant for the offense committed by the applicant. The quantum of penalty is reasonable and commensurate to the nature of the offense. Government also finds no merit in the plea of the respondent to extend the benefit of free allowance to the passenger. As per Section 79 (2) read with Baggage Rules, 1998 the benefit can be extended to the passenger who brought the bonafide goods and truly declared to the Customs. In the instant case both the conditions were not fulfilled by the passenger. - Decided against the applicant.

Issues involved:
Violation of customs regulations, confiscation of gold jewelry, imposition of penalty, appeal rejection, revision application filed.

Detailed Analysis:

1. Violation of Customs Regulations:
The case involved a Sri Lankan national arriving at Chennai airport with undeclared gold jewelry. The individual failed to declare the gold, which was valued at a significant amount. The customs officers intercepted the passenger at the green channel, leading to the confiscation of the gold under relevant customs laws. The applicant's attempt to walk through the green channel without declaring the goods violated Section 77 of the Customs Act, 1962.

2. Confiscation of Gold Jewelry and Imposition of Penalty:
The lower adjudicating authority confiscated the impugned gold jewelry under the Customs Act, 1962, along with imposing a fine for re-export and a penalty on the applicant. The penalty was imposed under Section 112(a) of the Customs Act, amounting to Rs. 37,340. Additionally, the applicant was given the option to redeem the gold for re-export on payment of a fine of Rs. 1,50,000 under Section 125 of the Act.

3. Appeal Rejection and Revision Application:
The applicant, being dissatisfied with the Order-in-Appeal by the Commissioner, filed a revision application before the Central Government. The grounds for revision included arguing that the true declaration was made, the goods were not concealed, and the applicant had no prior offenses. The applicant sought to set aside the personal penalty and redemption fine imposed by the lower authorities.

4. Government's Observations and Decision:
The Government carefully reviewed the case records, written submissions, and previous orders. It was noted that the applicant did not make a true declaration as required by law and attempted to evade customs detection by not declaring the gold. The Government upheld the lower authorities' decisions, emphasizing the applicant's violation of Section 77 and the voluntary admission made during the personal hearing, which served as crucial evidence against the applicant.

5. Legal Precedents and Penalty Imposition:
The Government cited legal precedents to support its decision, emphasizing the admissibility of confessional statements made before customs officers. The penalty imposed under Section 112(a) was considered reasonable and appropriate given the nature of the offense committed by the applicant.

6. Benefit of Free Allowance and Order Confirmation:
The Government rejected the plea to extend the benefit of free allowance to the passenger, as the conditions for such benefits were not met. The impugned Order-in-Appeal was upheld, and the revision application was deemed devoid of merit, leading to its rejection.

In conclusion, the judgment highlighted the importance of compliance with customs regulations, the consequences of non-declaration of goods, and the legal basis for imposing penalties in such cases. The decision underscored the significance of truthful declarations and the consequences of attempting to evade customs duties.

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