1986 (4) TMI 186 - AT - Central Excise

Summary

Issues:
1. Confiscation of electronic goods under the Customs Act, 1962.
2. Validity of baggage receipts for certain goods.
3. Liability for confiscation under Section 111(o) and 111(p) of the Act.
4. Consideration for release or confiscation of goods without valid baggage receipts.
5. Discretion of the appellate authority in confiscation matters.

The judgment involves an appeal against an order confirming the confiscation of electronic goods, including National Panasonic Stereo cassette recorders, calculators, and pens, valued at Rs. 17,130 under Sections 111(p) and 111(o) of the Customs Act, 1962. The appellant was found with these goods without proper vouchers during a customs patrol, leading to their seizure. The appellant admitted to bringing the goods for sale but claimed they were returned due to market conditions. The appellant's counsel argued that goods covered by valid baggage receipts should not be confiscated if unsold. The appellate authority incorrectly noted an admission of sale by the appellant. The appellant admitted guilt for other goods and sought release on payment of a fine and reduction in the penalty.

Regarding goods covered by valid baggage receipts, the judge found that under Section 111(o) and 111(p) of the Act, goods cleared under baggage but not sold are not liable for confiscation. As such, goods covered by proper baggage receipts were ordered to be released to the appellant. However, for goods without valid baggage receipts, the judge considered the appellant's financial status and the nature of the goods, such as electronic items and trade quantities of calculators and pens. Despite the appellant's financial situation, the judge decided against allowing redemption of these goods and upheld their absolute confiscation. The judge dismissed the appeal with modifications only in favor of releasing goods covered by valid baggage receipts.

The judgment highlights the importance of proper documentation and adherence to customs regulations when importing goods. It clarifies the circumstances under which goods may be confiscated under the Customs Act, emphasizing the distinction between goods cleared under baggage and those intended for sale. The judge's decision reflects a balance between legal provisions, factual circumstances, and considerations of justice and fairness in determining the fate of the confiscated goods.