1986 (8) TMI 234 - AT - Customs

Summary

Issues:
1. Confiscation of recorded video cassette tapes of foreign origin.
2. Interpretation of Section 11-B of the Customs Act, 1962 regarding video cassette tapes.
3. Compliance with Section 11-C of the Act in relation to the notification under Section 11-B.
4. Applicability of penalty under Section 112 of the Act.

Analysis:

1. The appeal challenged the order imposing a fine and penalty for the confiscation of recorded video cassette tapes of foreign origin. The appellant's business premises were searched, and tapes were seized as the appellant could not account for their licit acquisition. The proceedings under the Customs Act culminated in the impugned order.

2. The appellant argued that the tapes were imported in 1983 and were lawfully acquired, as accepted by the adjudicating authority. The appellant contended that since the tapes were pre-recorded before the notification under Section 11-B was issued, they should not be liable for confiscation, especially after having paid excise duty.

3. The respondent contended that the notification under Section 11-B covered all video cassette tapes, including pre-recorded ones. As the appellant did not provide a statement within 7 days of the notification, the goods were liable for confiscation under Section 111(p) and a penalty under Section 112.

4. The tribunal held that the notification under Section 11-B encompassed both blank and pre-recorded video cassette tapes to regulate their possession. Despite the lawful acquisition of the tapes, the appellant's failure to submit a statement as per Section 11-C led to a technical contravention. The tribunal reduced the fine and admonished the appellant instead of imposing a penalty, considering the circumstances.

In conclusion, the tribunal upheld the confiscation but reduced the fine due to the technical nature of the contravention. The penalty was set aside, and the appellant was admonished instead.