2018 (3) TMI 1072 - AT - Customs

Benefit u/s 80 of CA, 1962 - Re-export of gold through Sonauli Customs land station - Held that - any passenger entering into India is empowered to make a declaration of his baggage before entering into India as provided under Section 77 of Customs Act, 1962. Further, if it is found that goods accompanying him which are also called as baggage import of which is prohibited and in respect of which true declaration has been made under Section 77 of Customs Act, 1962 proper officer may at the request of the passenger detained such articles for the purpose of being returned to him on his leaving India under Section 80 of Customs Act, 1962 - the appellant was entitled for the benefit of provisions of Section 80 of Customs Act, 1962. The respondent directed to return goods confiscated to the appellant at Land Customs Station Sonali at Indo Nepal border to be carried out into India by the appellant. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Appeal against confiscation and penalty under Customs Act, 1962.
2. Seizure of gold at Sonauli Land Customs Station.
3. Applicability of Section 80 of Customs Act, 1962 for re-export of gold.
4. Procedural irregularities in seizure and declaration process.
5. Adjudication by Commissioner (Appeals) and Order-in-Appeal.

Analysis:
1. The appeal arose from an Order-in-Appeal by the Commissioner (Appeals) Central Excise, Allahabad, regarding the confiscation of gold seized from the appellant at Sonauli Land Customs Station. The appellant, a British passport holder, was accused of smuggling third country origin gold into India, leading to the issuance of a show cause notice under Sections 111 and 112 of the Customs Act, 1962.

2. The appellant contended that he purchased the gold from the UK for personal use and was not given the opportunity to declare it at the customs station. The seizure by SSB officers without following due procedure was challenged, emphasizing the violation of the Customs Act in the confiscation process.

3. The Tribunal considered the provisions of Section 80 of the Customs Act, 1962, which allows for the return of prohibited goods if a true declaration is made before entering India. Relying on a previous decision, the Tribunal held that the appellant was entitled to re-export the gold under Section 80, setting aside the Order-in-Appeal and granting the appellant the option to exercise rights under this section at the Land Customs Station.

4. The Tribunal noted that the appellant's passport was unlawfully detained during the proceedings, and emphasized the need to return it promptly to enable the appellant to travel out of India with the gold. The procedural deficiencies in the seizure and adjudication process were highlighted, leading to the direction for the immediate return of the confiscated goods to the appellant at the designated customs station for export.

5. Consequently, the impugned Order-in-Appeal was overturned, and the appeal was allowed, with instructions for the respondent to return the confiscated goods to the appellant at the specified Land Customs Station for export. The Tribunal's decision aimed to rectify the procedural lapses and uphold the appellant's rights under the Customs Act, 1962.