1996 (7) TMI 153 - HC - Customs

Summary

Issues involved:
The issue involves the confiscation of gold bits concealed in a briefcase upon arrival from Saudi Arabia, the imposition of penalty under the Customs Act, and the failure to provide the option to pay a fine in lieu of confiscation as per the relevant legal provisions.

Confiscation of Gold Bits:
The petitioner failed to declare 320 grams of gold bits concealed in the handle of his briefcase upon arrival from Saudi Arabia. The gold was confiscated by the Deputy Collector of Customs on the same day, and subsequent appeals and revisions failed, leading to the argument that the petitioner was not entitled to only a penalty but that the gold had to be confiscated due to evasion of duty and concealment. The petitioner's plea for substitution of confiscation with a penalty based on carrying the gold for his sister's marriage was rejected, as discretion to substitute a different order than confiscation was not available.

Legal Provisions and Relief:
The order of confiscation was made under Section 111 of the Customs Act, 1962, on account of concealment. Section 125 of the Act provides for the option to pay a fine in lieu of confiscation for goods that can be imported but become liable for confiscation due to unauthorized importation. The Deputy Collector of Customs failed to provide the petitioner with the option to pay a fine in lieu of confiscation, thus not complying with the legal provisions. The High Court set aside the orders of the authorities and remanded the matter to allow the petitioner to pay a sum in lieu of confiscation as decided by the Deputy Collector of Customs, emphasizing compliance with the law.

Decision and Disposition:
The High Court allowed the Writ Petition in part, setting aside the previous orders and directing the matter to be decided according to law by providing the petitioner with the opportunity to pay a sum in lieu of confiscation. The petitioner was instructed to appear before the Deputy Collector of Customs for further proceedings. No costs were awarded in the judgment.