2003 (6) TMI 85 - AT - Central Excise

Confiscation of goods - Absolute confiscation - Smuggling of watches - Redemption fine and penalty

Summary

Issues involved:
1. Confiscation of electronic goods under Sections 111(d), 111(l), and 111(m) of the Customs Act, 1962.
2. Imposition of penalty under Section 112(a) of the Customs Act, 1962.
3. Request for re-export of goods.
4. Valuation of seized goods.
5. Voluntariness of the appellant's statement.
6. Appellant's intention to smuggle goods.

Detailed Analysis:

1. Confiscation of Electronic Goods:
The Commissioner of Customs confiscated electronic goods of foreign origin valued at Rs. 24,21,700/- under Sections 111(d), 111(l), and 111(m) of the Customs Act, 1962. The appellant was allowed to redeem the goods, except watches valued at Rs. 1,08,200/-, on payment of a fine of Rs. 15,00,000/-. The watches were absolutely confiscated.

2. Imposition of Penalty:
A penalty of Rs. 2,50,000/- was imposed on the appellant under Section 112(a) of the Customs Act, 1962. The Hon'ble Apex Court in CC, Mumbai v. Elephanta Oil and Industries Ltd. ruled that confiscation of goods and permitting re-export does not preclude the imposition of a penalty under Section 112.

3. Request for Re-export of Goods:
The appellant requested permission to re-export the goods or alternatively clear them on payment of duty. The Tribunal noted that the appellant's initial declaration was false and aimed at smuggling. However, considering the appellant's detention under COFEPOSA and other factors, the Tribunal granted permission to re-export the goods, including the watches, on payment of a reduced redemption fine and penalty.

4. Valuation of Seized Goods:
The appellant disputed the valuation adopted by the authorities. The DRI officers valued the goods at Rs. 24,21,700/-, while the appellant admitted to goods valued at approximately Rs. 20,00,000/-. The Tribunal found that the lower authority correctly held the goods were intended for trading purposes and not bona fide.

5. Voluntariness of the Appellant's Statement:
The Tribunal observed that the appellant's statement was voluntary. The appellant admitted to smuggling goods and detailed his modus operandi, including his collaboration with another individual and his compensation for each trip.

6. Appellant's Intention to Smuggle Goods:
The Tribunal concluded that the appellant's intention was to smuggle goods into the country. The appellant initially declared goods worth Rs. 1,53,000/- but later admitted to a higher value when apprehended by DRI officers. The Tribunal upheld the confiscation of goods and found that the appellant attempted to smuggle goods by misdeclaring their value.

Conclusion:
The Tribunal upheld the confiscation of goods but modified the order to allow re-export of all goods, including the watches, on payment of a reduced redemption fine of Rs. 2,40,000/- and a penalty of Rs. 25,000/-. The appellant was also given the option to clear the goods for home consumption on payment of appropriate duty, in addition to the redemption fine and penalty.