1986 (8) TMI 282 - AT - Customs

Summary

Issues:
1. Restoration of appeal dismissed for default by the Tribunal.
2. Confiscation of gold coins with foreign marking under Customs Act and Foreign Exchange Regulations Act.
3. Interpretation of Notification No. G.S.R. 76 under the Foreign Exchange Regulations Act.
4. Application of Section 123 of the Customs Act regarding burden of proof.
5. Redemption of gold coins with foreign marking.

Issue 1: Restoration of appeal
The application sought restoration of the appeal dismissed for default due to the absence of the Consultant on the hearing date. The Tribunal set aside the order of dismissal, restoring the appeal for disposal on merits according to the law.

Issue 2: Confiscation of gold coins
The appeal challenged the order confirming the confiscation of six gold coins with foreign marking under Section 111(d) of the Customs Act and a penalty under Section 112. The search revealed unaccounted gold coins and currency seized by authorities, leading to the impugned order.

Issue 3: Interpretation of Notification No. G.S.R. 76
The appellant argued that the notification under the Foreign Exchange Regulations Act permitted foreign coins to be brought into India. However, the Tribunal held that the notification did not apply to gold coins with foreign markings, as it pertained to foreign exchange excluding coins not legal tender.

Issue 4: Application of Section 123 regarding burden of proof
The Departmental Representative contended that Section 123, dealing with the burden of proof for seized goods, applied to the gold coins under seizure. The Tribunal upheld this, stating that the onus to prove the coins were not smuggled lay on the appellant.

Issue 5: Redemption of gold coins
The appellant requested redemption of the gold coins based on their purity of 22 carats. The Tribunal, following precedent, allowed redemption on payment of a fine of Rs. 3,000. The appellant was required to convert the coins into ornaments through a licensed dealer and report compliance to avoid confiscation.

In conclusion, the Tribunal dismissed the appeal except for modifying the order to permit redemption of the gold coins with foreign marking upon payment of the specified fine and compliance with conversion requirements. The decision clarified the application of relevant legal provisions and upheld the confiscation while providing a redemption option.