1988 (5) TMI 162 - AT - Customs

Summary

Issues Involved:
1. Validity of Caravan Importation
2. Declaration of Goods
3. Legality of Search and Seizure
4. Concealment and Mens Rea
5. Currency Seizure
6. Application of Relevant Sections of Customs Act
7. Prosecution and Detention
8. Confiscation of Goods and Vehicle
9. Imposition of Penalty

Analysis:

1. Validity of Caravan Importation:
The appellant imported a Caravan under Carnet No. 729048, valid until 24th May 1986. The Caravan was intended for transit to Nepal. The Collector of Customs (Preventive) found that the vehicle was legally imported under the carnet system.

2. Declaration of Goods:
The appellant declared the vehicle, household items, camping goods, tools, and spare tyres in Form 'X'. The Collector found that a declaration had been made in writing for these items. However, the ball point pen tips were not specifically declared, leading to a charge of non-declaration.

3. Legality of Search and Seizure:
The Customs officers conducted a search and seized the Caravan and its contents, including ball point pen tips, under the belief that the goods were smuggled into India. The Collector found that the Customs officials did not follow the correct procedures prescribed under the Tourist Baggage Rules.

4. Concealment and Mens Rea:
The ball point pen tips were found concealed under the carpet. The Collector noted that there were no specially designed cavities in the vehicle, contrary to the department's claims. The appellant argued that the goods were placed under the floorboard for convenience and there was no intention to smuggle.

5. Currency Seizure:
Indian and foreign currencies were seized from Mr. Rupper's room. The Collector found no offence regarding the currency seized and ordered its release.

6. Application of Relevant Sections of Customs Act:
The appellant was charged under Sections 111(d), 111(f), 111(j), 115(2), and 119 of the Customs Act. The Collector found that these sections were not violated regarding household goods, camping equipment, and vehicle parts. However, the ball point pen tips were considered commercial quantities and liable to confiscation under Section 111(d).

7. Prosecution and Detention:
The appellant and Mr. Rupper were arrested and detained. The Collector noted that the statement of the appellant was obtained under duress and was not voluntary. The department's case was based on misrepresentation of facts, and the charge of racketeering was not proved.

8. Confiscation of Goods and Vehicle:
The Collector ordered the confiscation of the Caravan under Section 115(2) but allowed its redemption on payment of a fine. The ball point pen tips were confiscated absolutely under Section 111(d). The Collector released other seized goods and dropped charges against co-accused.

9. Imposition of Penalty:
A penalty of Rs. 1000 was imposed on the appellant under Section 112. The Collector took a lenient view considering the circumstances.

Conclusion:
The Appellate Tribunal found that the Caravan and goods were meant for transit to Nepal, not for importation into India. The violations of the Customs Act and Import Act were not established beyond doubt. The Tribunal set aside the order of confiscation of the vehicle and ball point pen tips and the imposition of the penalty. The department was directed to refund the redemption fine and penalty amount and to release the ball point pen tips for re-export. The appeal was accepted.