1994 (5) TMI 71 - AT - Customs

Summary

Issues Involved:
1. Confiscation of gold and gold ornaments under Sections 111(d), 111(l), and 111(m) of the Customs Act, 1962.
2. Imposition of penalties under Section 112(a) and 112(b) of the Customs Act, 1962.
3. Validity of the appellant's claim regarding the circumstances of gold acquisition and intent to declare it.
4. Examination of evidence and conduct of the appellants.

Issue-wise Detailed Analysis:

1. Confiscation of Gold and Gold Ornaments:
The gold and gold ornaments, valued at Rs. 19,85,727, were confiscated under Sections 111(d), 111(l), and 111(m) of the Customs Act, 1962. The seizure was based on information received by the Directorate of Revenue Intelligence that contraband gold was concealed in the unaccompanied baggage booked in the name of one appellant. The gold was found hidden in a water heater and washing machine. The Tribunal upheld the confiscation, noting that the appellant's explanation lacked credible evidence and that the gold was imported without a valid permit, thereby violating the Customs Act.

2. Imposition of Penalties:
Penalties were imposed under Section 112(a) and 112(b) of the Customs Act, 1962. The main appellant was fined Rs. 5,00,000, while the other appellants were fined Rs. 50,000 and Rs. 25,000 respectively. The Tribunal found that the penalties were justified due to the deliberate attempt to smuggle gold. However, considering the circumstances and the confiscation of the gold, the penalties were reduced to Rs. 2,00,000 for the main appellant, Rs. 15,000 for one appellant, and Rs. 10,000 for the other.

3. Validity of the Appellant's Claim:
The appellant claimed that due to the Gulf War, his employer settled his dues in gold and gold ornaments, which he intended to declare and clear legally. He argued that he had sent a letter to the Reserve Bank of India (RBI) seeking permission to import the gold. However, the Tribunal found inconsistencies in his story. The appellant failed to provide documentary evidence of his employment terms or the alleged settlement in gold. The Tribunal also noted that the appellant's conduct, such as not informing the clearing agent or customs about the gold, contradicted his claim of bona fide intentions.

4. Examination of Evidence and Conduct:
The Tribunal scrutinized the evidence and the conduct of the appellants. It was noted that the appellant did not inform his associates about the gold in the baggage and attempted to clear the baggage without disclosing its contents. The appellant's claim of having sent a letter to the RBI was also questioned, as the RBI denied receiving such a letter. The Tribunal concluded that the appellant's actions were not consistent with someone intending to follow legal procedures. The involvement of the other appellants was deemed to be at the behest of the main appellant, and there was no evidence that they were aware of the gold in the baggage.

Conclusion:
The Tribunal upheld the confiscation of the gold and gold ornaments and the penalties imposed under the Customs Act, 1962. The penalties were reduced considering the circumstances, but the appeals were otherwise dismissed. The judgment emphasized the lack of credible evidence supporting the appellant's claims and highlighted the deliberate attempt to smuggle gold into the country.