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Issues Involved:
1. Confiscation of gold bangles under Section 111(d) of the Customs Act for violation of Section 13(1) of the Foreign Exchange Regulation Act (FERA). 2. Non-declaration of gold bangles under Section 111(1) of the Customs Act. 3. Imposition of a penalty of Rs. 30,000 on the appellant. 4. Eligibility for benefits under Rule 6 of the Baggage Rules. Issue-wise Detailed Analysis: 1. Confiscation of Gold Bangles under Section 111(d) of the Customs Act for Violation of Section 13(1) of FERA: The Additional Collector of Customs confiscated 12 gold bangles on the basis that they were in crude form and thus considered as gold bullion, violating Section 13(1) of FERA. The appellant argued that the bangles were purchased in the USA and were typical of the jewelry sold there. The Tribunal noted that the Additional Collector did not obtain any expert opinion or test the purity of the bangles, which he described as "gold strips shaped and welded into circular form." The Tribunal found that the confiscation order was not supported by acceptable evidence and that the bangles should be considered jewelry, even if in crude form. Consequently, the Tribunal set aside the confiscation order under Section 111(d). 2. Non-declaration of Gold Bangles under Section 111(1) of the Customs Act: The appellant declared 4 bangles but did not declare 8 bangles worn by her daughters and mother-in-law. The Additional Collector held that this non-declaration warranted confiscation under Section 111(1). The appellant contended that there was no concealment, as all family members went through the red channel and the bangles were visible. The Tribunal agreed with the appellant, noting that the declaration required under Section 77 of the Customs Act pertains to the contents of baggage and does not necessarily include items worn on the person. The Tribunal concluded that the non-declaration was not intentional and set aside the confiscation under Section 111(1). 3. Imposition of a Penalty of Rs. 30,000 on the Appellant: The Additional Collector imposed a penalty of Rs. 30,000 on the appellant for non-declaration and importing gold bullion. The appellant argued that there was no intentional non-declaration and that the penalty was unjustified. The Tribunal, having set aside the confiscation orders under both Section 111(d) and Section 111(1), found no grounds for imposing the penalty. Therefore, the penalty was also set aside. 4. Eligibility for Benefits under Rule 6 of the Baggage Rules: The Tribunal noted that the appellant and her daughters were returning to India under the Transfer of Residence (T.R.) rules and were entitled to bring gold jewelry worth Rs. 3,000 each. However, there was no precise evidence regarding the duration of stay abroad for the appellant's daughters and mother-in-law. The Tribunal remanded the matter to the Additional Collector to determine their eligibility for benefits under Rule 6 of the Baggage Rules. If eligible, the bangles should be released under the Baggage Rules, subject to payment of duty for any excess. Separate Judgments Delivered by Judges: Judgment by Member (Judicial): The Member (Judicial) found that the confiscation orders were not justified and set aside both the confiscation and the penalty. The case was remanded to the Additional Collector to determine eligibility under Rule 6 of the Baggage Rules. Judgment by Member (Technical): The Member (Technical) disagreed, holding that the bangles were correctly classified as gold bullion and that the confiscation and penalty were justified. He emphasized the need for declaration of all items, including those worn on the person, under Section 77 of the Customs Act. Final Order: The President referred the matter to a third Member due to the difference of opinion. The third Member agreed with the Member (Judicial), resulting in the majority view that the confiscation and penalty should be set aside, and the case should be remanded to determine eligibility for benefits under Rule 6 of the Baggage Rules.
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