2021 (9) TMI 1188 - HC - Customs

Mis-declaration of imported goods - metal idol/statue - Confiscation - levy of redemption fine and penalty - metal idol/statue imported by the petitioner by not declaring it as an antique article - HELD THAT - The Archeology Department had intimated to the respondents that the subject idol/statue was suspected to be an antique item. It is on such basis that the value of the said idol/statue is fixed at ₹ 5,00,000/- for the purposes of duty and penalty - the complexion of the proceedings however takes a different turn when Mr. Ankhad, on instructions from his client states before us that his client would like to donate the said idol/statue to the Customs Department as according to the petitioner it is not an antique item as claimed by the Revenue. In the peculiar facts of the case, it would be appropriate, that the Revenue auctions the subject idol/statue, by appointing an appropriate agency for such purpose and sell the idol/statue in a public auction. The petitioner does not have any objection to such course of action to be undertaken by the Revenue - the Revenue is permitted to take appropriate steps to auction the subject idol/statute. All the formalities in that regard be completed within a period of three months from today. Stand over for three months.

Summary

Issues:
Challenge to Customs order confiscating metal idol/statue for not declaring it as an antique article.

Analysis:
The writ petition challenges a Customs order confiscating a metal idol/statue imported by the petitioner for not declaring it as an antique article. The petitioner purchased the idol/statue for &8377; 1250/- from a street market in Bangkok, but Customs valued it at &8377; 5,00,000/-, imposing duty and penalty. The petitioner was earlier directed to confirm if Bhabha Atomic Research Centre (BARC) could determine the age of the item. However, petitioner's counsel clarified that BARC is not the appropriate authority for such determination. The Archaeology Department indicated that the idol/statue might be an antique, leading to the valuation for duty and penalty.

The proceedings took an unexpected turn when the petitioner expressed a desire to donate the idol/statue to the Customs Department, disputing its antique status claimed by the Revenue. Acknowledging this gesture, the Court suggested auctioning the idol/statue by appointing an appropriate agency for the purpose. The petitioner consented to this course of action, allowing the Revenue to auction the item. The Court granted permission for the Revenue to proceed with the auction within three months, with the freedom to set an appropriate reserve price.

The Court directed the Revenue to complete all necessary formalities for the auction within the stipulated three-month period. The outcome of the auction is to be presented on the next hearing date, which was adjourned for three months to allow for the auction process to be carried out effectively.