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2016 (7) TMI 647 - CGOVT - CustomsThe applicant was not eligible to import gold either in terms of Notification No. 31/2013-Cus dated 01.03.2013 nor under rule 6 of Baggage Rules ibid. He also did not declare the impugned goods that were in a substantial/commercial quantity. Hence the same cannot be treated as bona fide baggage in terms of Section 79 of the Act ibid. The said gold is imported in violation of Foreign Trade provisions of Section 77 79 11 of Customs Act 1962; para 2.20 of EXIM Policy of 2009-14 and provisions of Section 3 (3) and 11(1) of Foreign Trade (Development & Regulation) Act 1992. The same would thus appropriately constitute goods liable to confiscation under Section 111 (d) and (l) of the Customs Act 1962. The applicant has also requested to permit re-export of impugned goods. Government finds that the provision for re-export of baggage is available under Section 80 of the Customs Act 1962. However this Section is applicable only to cases of bonafide baggage declared to Customs which the applicant failed to do thus the applicant is not eligible for re-export of impugned goods. Also being an Indian National this is nothing but an attempt by the applicant to avoid the burden of duty In similar circumstances Central Government has denied re-export of goods. The goods which are liable for confiscation cannot be allowed to be re-exported. Hence the Government is of the view that the request of the applicant for re-export of goods is not legal and proper and cannot be allowed.
Issues Involved:
1. Confiscation of gold and electronic goods under the Customs Act. 2. Eligibility to import gold. 3. Declaration of goods to Customs. 4. Request for re-export of confiscated goods. 5. Imposition of penalty under the Customs Act. 6. Alleged violation of principles of natural justice. Detailed Analysis: Confiscation of Gold and Electronic Goods: The officers of the Air Intelligence Unit of Customs, Chennai Airport intercepted the applicant who had arrived from Singapore. Upon search, two gold bars and one gold coin were recovered from the applicant's trouser pocket, and various electronic goods were found in his baggage. The applicant did not declare these items to Customs and had no documents to show legal import. Consequently, the goods were seized under the Customs Act, 1962 and the Foreign Trade (Development & Regulation) Act, 1992. The Additional Commissioner of Customs ordered the absolute confiscation of the gold and allowed the release of the electronic goods upon payment of duties. Eligibility to Import Gold: The applicant contended that he was eligible to import gold. However, the eligibility to import gold is determined by Notification No. 31/2013-Cus dated 01.03.2013. The Commissioner (Appeals) concluded that the applicant did not meet the eligibility criteria, and the applicant failed to provide any evidence to the contrary. Therefore, the government found no merit in the applicant's plea of eligibility to import gold. Declaration of Goods to Customs: The applicant did not declare the gold and electronic goods to Customs as required under Section 77 of the Customs Act. He attempted to pass through the Green Channel without declaring the goods, which he admitted in his voluntary statement. The goods did not qualify as bona fide baggage under Section 79 of the Customs Act, 1962 and Para 2.20 of the EXIM Policy. Thus, the goods were liable for confiscation under Section 111 (d) and (l) of the Customs Act, 1962. Request for Re-export of Confiscated Goods: The applicant requested permission to re-export the confiscated gold. However, Section 80 of the Customs Act, 1962, which allows re-export of baggage, applies only to bona fide baggage declared to Customs. The applicant failed to declare the goods, making him ineligible for re-export. The government cited the case of Hemal K Shah 2012 (275) ELT 266 (GOI) and the Apex Court's decision in CC Kolkata Vs Grand Prime Ltd 2003 (155) ELT 417 (SC) to support the denial of re-export. Imposition of Penalty: The applicant argued against the penalty imposed under Section 112 (a) of the Customs Act, 1962. The government noted that the applicant attempted to smuggle gold by concealing it and did not declare it in the Customs declaration form. The penalty was deemed reasonable considering the gravity of the offense. Alleged Violation of Principles of Natural Justice: The applicant claimed that the lower authorities' orders violated the principles of natural justice and that he was not given an opportunity to declare the goods properly. However, the government found that the applicant was given multiple opportunities to declare the goods but failed to do so. The government upheld the lower authorities' decisions, finding no violation of natural justice. Conclusion: The government upheld the Order-in-Appeal and rejected the revision application, finding no merit in the applicant's claims. The absolute confiscation of gold was deemed appropriate, and the penalty imposed was considered reasonable. The request for re-export of the goods was denied, and the principles of natural justice were found to be upheld. The revision application was thus rejected as being devoid of merit.
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