1987 (3) TMI 114 - HC - Customs

Summary

Issues:
1. Declaration of goods at customs
2. Interpretation of Baggage Rules
3. Confiscation of goods under Customs Act
4. Discretion of adjudicating officer under Section 125 of the Customs Act

Analysis:

1. Declaration of goods at customs:
The petitioners arrived at Delhi Airport and declared their goods for customs clearance. Petitioner No. 1 declared one V.C.R. while petitioners 2 to 5 were found with additional V.C.R.s and other items. The Customs Authorities confiscated the goods and imposed penalties under Sections 111 and 112 of the Customs Act, 1962. The petitioners argued that they were willing to pay duty on all items and were entitled to import certain goods under the Baggage Rules.

2. Interpretation of Baggage Rules:
The petitioners contended that they were entitled to import goods without duty up to a limit under the Baggage Rules. They claimed that the Customs Authorities wrongly treated them as one family, allowing only one V.C.R. to be declared and confiscating the rest. The appellate and revision authorities upheld the confiscation based on the perception of false declaration by the petitioners.

3. Confiscation of goods under Customs Act:
The respondents maintained that the petitioners concealed goods beyond the free allowance limit and made a false declaration. The authorities viewed the case as one of false declaration throughout the process. The judgment noted that even if the petitioners were willing to pay duty, false declaration warranted confiscation as per the law.

4. Discretion of adjudicating officer under Section 125 of the Customs Act:
The judgment highlighted Section 125 of the Customs Act, which allows the adjudicating officer to release prohibited goods by imposing fines in lieu of confiscation. It was observed that the petitioners were not given the option to pay fines instead of facing confiscation. The court directed a remand to consider granting the petitioners this option and to provide them with an opportunity to prove their case against false declaration.

In conclusion, the petition was partly allowed, setting aside the previous orders and remanding the matter for reconsideration in light of the discretion provided under Section 125 of the Customs Act.