1991 (8) TMI 114 - CGOVT - Customs

Summary

Issues:
1. Extension of stay beyond the permitted period for re-export of gold jewellery.
2. Rejection of extension request by the Collector of Customs.
3. Demand of duty amounting to Rs. 39,270.
4. Appeal process before Collector (Appeals) and CEGAT.
5. Interpretation of Tourist Baggage Rules, 1978 regarding extension of stay and re-export.
6. Consideration of applicant's actions and duty demand.
7. Decision on re-export of detained jewellery.

Detailed Analysis:
1. The applicant arrived in India as a tourist and was allowed to bring gold jewellery, including bangles, a necklace, and Jhumkas. She requested an extension of stay beyond the permitted six months for re-export. The Collector rejected her request, leading to a show cause notice for duty payment.

2. The applicant appealed the duty demand decision to the Collector (Appeals), who remanded the case for re-consideration. However, before a final decision, the applicant left for Pakistan, and her jewellery was detained. The Assistant Collector reaffirmed the duty demand, which was upheld by the Collector (Appeals).

3. The applicant then appealed to CEGAT, which directed her to file a revision application before the Government. The Government noted the Tourist Baggage Rules, allowing extensions of stay up to 18 months by the Collector and beyond two years by the Board.

4. The Government observed that the applicant should have been directed to re-export the jewellery immediately if her extension request was denied. No evidence showed any re-export direction given to her, and the duty demand of Rs. 39,270 was deemed excessive, almost confiscatory.

5. Considering the applicant's bona fide actions and lack of re-export direction, the Government allowed the re-export of the detained jewellery within two months from the order's receipt, thereby granting the revision application and overturning the duty demand decision.