1994 (7) TMI 190 - AT - Customs

Summary

Issues:
1. Confiscation of foreign liquor under Customs Act for lack of proper documentation and permission.
2. Legal possession of foreign liquor gifted by foreign embassies to a privileged person without import license.
3. Interpretation of Foreign Privileged Persons (Regulations of Customs Privileges) Rules, 1957 regarding possession of consumable items by non-privileged persons.
4. Imposition of redemption fine, duty payment, and penalty in a customs case.

Analysis:
1. The appeal was filed against the Collector of Customs (Appeals) order which confiscated 38 bottles of foreign liquor due to lack of correlation with certificates, absence of prior permission, and non-compliance with Foreign Privileged Persons Rules, 1957.

2. The facts revealed that the liquor was found during a search, and the appellant explained that most bottles were gifts from foreign embassies and some were personally imported. The appellant argued that as the liquor was gifted by privileged persons, it should not be confiscated or subjected to duty.

3. The Ministry of External Affairs verified the embassy certificates, confirming their authenticity. The judge noted that privileged persons need permission to sell or dispose of goods but did not clearly address possession by non-privileged individuals. The appellant was allowed to redeem the bottles by paying a fine of Rs. 2,000 and applicable duty, considering the ambiguity in Rule 4.

4. The judge upheld the order with modifications, allowing redemption of liquor bottles but imposing a redemption fine and duty payment. The penalty of Rs. 1,000 was deemed reasonable and not interfered with. The decision clarified the legal possession of gifted items under customs regulations.

Conclusion:
The judgment addressed the issues of confiscation of foreign liquor, legal possession of gifted items, interpretation of customs rules, and imposition of fines and penalties in customs cases. It highlighted the importance of proper documentation, permissions, and compliance with regulations when dealing with imported goods, especially those gifted by privileged persons. The decision provided clarity on possession rights and duties payable in such circumstances, ensuring a fair resolution in the customs matter.