1985 (6) TMI 153 - AT - Customs

Summary

Issues:
1. Seizure of goods of foreign origin from a vessel at Visakhapatnam Port.
2. Confiscation of goods and vessel under Customs Act, 1962.
3. Imposition of redemption fine and personal penalties.
4. Tribunal's order and reference to the High Court for a question of law.

Analysis:
1. The judgment details the seizure of various goods of foreign origin from the vessel "JAG DHIR" at Visakhapatnam Port. The recovery included items like Scotch Whisky, cassette recorders, cigarettes, cameras, clothing, and other miscellaneous items found in different locations on the ship.

2. The Customs Officers conducted thorough rummaging operations resulting in the recovery of goods from different parts of the vessel. Subsequently, the goods were seized under proper documentation, and the Master of the Ship, along with the crew members, were examined as per Section 108(1) of the Customs Act, 1962.

3. The Additional Collector issued an order for the absolute confiscation of seized goods under Sections 111(d)(e) and (f) of the Customs Act, 1962. Additionally, the vessel "JAG DHIR" was also confiscated under Section 115(2) with an option for redemption upon payment of a fine. Furthermore, penalties were imposed on the applicant and the Ship's Master under Section 112 of the Customs Act, 1962.

4. The Tribunal affirmed the confiscation of the vessel and the imposition of the redemption fine. However, it set aside the order imposing personal penalties on the applicant. Subsequently, under Section 130(1) of the Customs Act, 1962, the applicant sought a reference to the High Court for a question of law regarding the adjudicating authority's satisfaction and the defense against action under Section 115(2) of the Act.

5. After hearing both sides, the Tribunal modified the question for reference to the High Court, focusing on whether the non-framing of rules under Section 115(2) of the Customs Act, 1962, could be a valid defense against action on the vessel, considering the nature and quantity of contraband goods recovered with the knowledge of the Master. This reference aims to clarify the legal implications of the procedural aspects in confiscation cases involving vessels under the Customs Act.