1990 (5) TMI 138 - AT - Customs

Summary

Issues:
1. Imposition of penalty under Section 112 of the Customs Act, 1962 for transfer of foreign color T.V. camera.
2. Lack of specific indication of penal clause sub-section in the show cause notice.
3. Applicability of Section 79 and Section 111(o) of the Act to goods exempted from duty.
4. Interpretation of Baggage Rules under Section 79(2) of the Customs Act, 1962.
5. Validity of the plea for reduction in penalty based on bona fide impression.

Analysis:
1. The appeal challenged the penalty imposed under Section 112 of the Customs Act, 1962 for the transfer of a foreign color T.V. camera to a Race Club. The appellant contended that the show cause notice did not specify the sub-section of the penal clause, causing prejudice to the defense.

2. The learned Counsel argued that Section 79 read with Section 111(o) of the Act only applies to goods exempted from duty, and the duty suffered by the camera brought by the appellant was not covered under these provisions.

3. The Tribunal considered the submissions and rejected the argument that Section 79 only applies to non-duty paid items. It clarified that the Baggage Rules framed under Section 79(2) prohibit the sale of articles brought as baggage for a specified period, irrespective of duty payment status.

4. The Tribunal emphasized that the absence of a specific sub-clause in the show cause notice did not invalidate the order if the charge and relevant facts were clearly presented. In this case, the appellant brought the camera as baggage and sold it to the Race Club, violating Section 111(o) and attracting penalty under Section 112.

5. The Tribunal, after confirming the findings of the adjudicating authority, reduced the penalty based on the appellant's bona fide belief that the camera would benefit the Club. The penalty was reduced to Rs. 1,000, considering the circumstances. The appeal was dismissed, except for the modified penalty amount.

This detailed analysis of the judgment addresses the issues raised in the appeal, the interpretation of relevant legal provisions, and the final decision of the Tribunal regarding the penalty imposed under the Customs Act, 1962.