2021 (9) TMI 660 - HC - Customs

Seeking permission to go to Afghanistan - medicines - petitioner carried certain medicines illegally while going to Afghanistan - redetermination of value of goods - confiscation of goods - redemption fine - penalty - prosecution under Section 132 and 135(1)(a) of the Custom Act - HELD THAT - Considering that the adjudication proceedings qua the petitioner have attained finality and the petitioner even does not wish to redeem the articles, is required to deposit the penalty amount, hence this Court finds no error in the impugned judgment. Petition dismissed.

Summary

Issues:
Challenge to order permitting travel to Afghanistan subject to conditions, imposition of penalty under Customs Act, plea for reduced penalty, failure to file appeal against Customs order, release of passport without penalty deposit, applicability of Customs Act provisions on recovery for foreign nationals.

Analysis:

1. The petitioner challenged an order granting permission to travel to Afghanistan subject to depositing a redemption fine and personal penalty imposed by the Department. The petitioner was intercepted carrying medicines illegally, and the Customs authorities re-determined the value of seized goods, confiscating them and imposing a penalty of &8377;13 lakhs. The petitioner pleaded inability to pay the full penalty due to family responsibilities.

2. The learned CMM permitted travel to Afghanistan with conditions, including depositing the penalty and furnishing an address abroad. The petitioner's challenge to this order was dismissed by the Sessions Judge, affirming the requirement to deposit the penalty as per the Customs order.

3. The petitioner sought permission to deposit only 20% of the penalty amount and travel to Afghanistan without redeeming the goods. However, the Court noted that the penalty and redemption fine amounts were correctly determined by the Customs authorities, and the petitioner failed to file an appeal against their order.

4. The Court highlighted that the penalty imposed on the petitioner had a personal liability aspect, requiring payment irrespective of the goods' redemption. Given the petitioner's circumstances and the finality of the Customs order, the Court found no grounds to release the passport without depositing the full penalty amount.

5. The petitioner relied on previous judgments where release of passport was permitted in certain cases. However, the Court distinguished those cases as they involved Indian nationals with property in India, enabling recovery under the Customs Act, unlike the petitioner who was a foreign national without assets in India.

6. Another case cited by the petitioner involved permitting travel abroad on depositing a significant sum pending adjudication. The Court noted the differences in circumstances, emphasizing the need for the petitioner to deposit the penalty amount due to the finality of the adjudication proceedings.

7. Ultimately, considering the finality of the adjudication proceedings, the petitioner's unwillingness to redeem the goods, and the necessity to deposit the penalty, the Court dismissed the petition, upholding the requirement to pay the full penalty amount before being permitted to travel.

8. The Court ordered the dismissal of the petition and directed the upload of the order on the Court's website, concluding the judgment on the matter.