1978 (10) TMI 47 - CGOVT - Customs

Summary

Issues:
1. Imposition of penalty under Defence of India Rules for gold seizure.
2. Validity of penalty under Rule 126L(16) of Defence of India Rules.
3. Consideration of penalty imposed under Customs Act in revision application.

Analysis:
1. The case involves the seizure of foreign marked gold and gold ornaments along with other goods, leading to a show cause notice for contravention of Defence of India Rules. The Collector imposed a penalty of Rs. 10,000 on the individual. The appeal was rejected, prompting a revision application before the Central Government.

2. The applicant argued that penalty under Rule 126L(16) of Defence of India Rules could not be imposed unless the seizure was made under relevant sub-clauses. Citing a case law, the applicant contended that without proper seizure under Rule 126L, there could be no liability for confiscation under Rule 126-M or imposition of penalty under sub-clause (16) of Rule 126L. However, the government found the defence untenable as the seizure was made for contravention of various Acts, including Defence of India Rules.

3. Another point raised was the severe penal action already imposed under the Customs Act, including absolute confiscation of gold and levying a personal penalty. The applicant requested consideration of the penalty under Customs Act in the revision application. However, the government noted that the Customs Act proceedings were independent of those under Defence of India Rules and found the penalty imposed under Defence of India Rules to be appropriate given the circumstances.

4. The government rejected the revision application, stating that there was no justification to interfere with the order-in-appeal. The penalty imposed under Defence of India Rules was deemed appropriate, especially considering the ongoing appeal regarding penalties under the Customs Act.