1992 (9) TMI 197 - AT - Customs

Summary

Issues Involved:
1. Eligibility for duty-free reimport under Section 20 of the Customs Act, 1962.
2. Compliance with Import Trade Control Order 17/55.
3. Liability for confiscation and penalty under Sections 111(d) and (m) of the Customs Act, 1962.
4. Applicability of mens rea and the relevance of cited case laws.

Detailed Analysis:

1. Eligibility for Duty-Free Reimport under Section 20 of the Customs Act, 1962:
The appellants claimed that the goods in question were reimported consignments of their earlier export, covered by the Export Certificate and P.P. forms. However, upon examination, it was found that the reimported goods did not tally in quantity, number of pieces, or value with the originally exported goods. Consequently, the benefit of Section 20 CA 62 for duty-free reimport could not be extended as the identity of the goods could not be established. The appellants eventually admitted that the goods were not the same as those originally exported and disclaimed any connection with them.

2. Compliance with Import Trade Control Order 17/55:
The department argued that the goods were imported in contravention of the Import Trade Control Order 17/55, dated 17-12-1955. The appellants contended that they had not imported the goods and had no involvement in their reimportation. They also argued that the goods were sent by the foreign supplier by mistake and should be allowed to be re-exported. The tribunal noted that the appellants had initially claimed the goods and provided the corresponding forms and Export certificates, thereby assuming the burden to establish the identity of the goods, which they failed to do.

3. Liability for Confiscation and Penalty under Sections 111(d) and (m) of the Customs Act, 1962:
The Additional Collector confiscated the goods under Sections 111(d) and (m) but allowed the appellants the option to re-export the goods on payment of a redemption fine. The tribunal found that the appellants' subsequent denial of any connection with the goods after the customs detected discrepancies was not convincing. The goods were liable to confiscation as the appellants could not establish their identity, and the importation was not in compliance with the relevant orders and provisions of the Customs Act. The tribunal upheld the confiscation but noted that the Additional Collector had been lenient in not imposing a penalty.

4. Applicability of Mens Rea and the Relevance of Cited Case Laws:
The appellants argued that no mens rea was involved and cited previous tribunal orders to support their case. The tribunal clarified that the question of mens rea arises only in the context of imposing a penalty under Section 112, which was not imposed in this case. The tribunal also found that the cases cited by the appellants were distinguishable and not relevant to the present matter. The tribunal concluded that the appellants had not succeeded in establishing their bona fides and that the charges under Sections 111(d) and (m) were duly established.

Conclusion:
The tribunal rejected the appeal, upholding the confiscation of the goods and the Additional Collector's decision to allow re-export on payment of a redemption fine. The tribunal noted that the appellants had failed to establish the identity of the goods and comply with the relevant provisions of the Customs Act and Import Trade Control Order. The tribunal also found that the appellants' arguments regarding mens rea and the relevance of cited case laws were not justified.