1988 (3) TMI 276 - AT - Customs

Summary

Issues Involved:
1. Justification of absolute confiscation of goods from the shop premises.
2. Justification of absolute confiscation of goods from the residential premises.
3. Justification of the imposition of a penalty of Rs. 5000/- on the appellant.

Issue-wise Detailed Analysis:

1. Justification of Absolute Confiscation of Goods from the Shop Premises:

The Additional Collector ordered the confiscation of goods notified under Section 11B of the Customs Act, found in the appellant's shop. The appellant failed to deliver the required statement under Section 11C and maintain accounts under Section 11E. The defense that the goods were not intended for sale was rejected, as the goods were kept in the shop along with items for sale. The appellant's statement and diaries indicated purchases and disposal of notified goods. The confiscation of items listed in Annexure II to the show cause notice was upheld, as the appellant did not comply with Sections 11C and 11E. The defense that some items were gifts or damaged was deemed irrelevant.

2. Justification of Absolute Confiscation of Goods from the Residential Premises:

The Additional Collector's order did not properly consider the defense regarding goods seized from the residential premises. Section 11G exempts goods for personal use kept in residential premises from Sections 11C, 11E, and 11F. The appellant claimed these goods were imported as baggage items for personal use. The Additional Collector failed to individually consider these items and the appellant's defense of free allowances during visits abroad. The adjudicating authority must consider whether the goods claimed under free allowances were justified. The order of confiscation for items listed in Annexure III to the show cause notice was set aside, and the matter was remanded for fresh consideration.

3. Justification of the Imposition of a Penalty of Rs. 5000/- on the Appellant:

With the order of confiscation of goods from the residential premises set aside, the penalty imposed on the appellant could not stand. The penalty was set aside, with the liberty for the Additional Collector to impose a penalty after fresh adjudication of the goods seized from the residential premises.

Conclusion:

The appeal was allowed in part. The confiscation of items from the residential premises and the penalty imposed were set aside. The matter was remanded to the Additional Collector for fresh consideration of the goods seized from the residential premises. The confiscation of goods from the shop premises was confirmed.