1997 (2) TMI 337 - AT - Customs

Summary

Issues:
1. Whether the goods imported by the appellant were correctly treated as baggage by the adjudicating officer, leading to confiscation under Section 111(d) of the Customs Act, 1962.
2. Whether the goods were meant for commercial use by the appellant and not as personal baggage of the employee.
3. Whether the confiscation of the goods and imposition of a fine were justified.

Analysis:

Issue 1:
The appellant, a manufacturer of cigarettes, imported exposed transparencies from the U.S. for an advertising campaign. The goods were brought by the appellant's employee, Shri Devraj Basu, who declared them in the Baggage Declaration Form. The adjudicating officer treated the goods as baggage and confiscated them under Section 111(d) of the Customs Act. The appellant contested this treatment, arguing that the goods were not personal baggage but commercial cargo for the advertising campaign. The Tribunal found that the initial mistake of treating the goods as baggage led to the incorrect finding of non-bona fide baggage. The confiscation was deemed unjustified, and the decision was set aside.

Issue 2:
The appellant contended that the goods were imported for commercial use and not as personal baggage of the employee. The appellant had clearly stated in a letter that the goods were meant for its use, and all relevant import documents were enclosed. The Tribunal agreed with the appellant, emphasizing that the goods were for the appellant's advertising campaign and not for personal use by the employee. The Tribunal held that the confiscation based on the incorrect classification of the goods as non-bona fide baggage was unwarranted.

Issue 3:
The adjudicating officer justified the confiscation by arguing that the goods were not bona fide baggage of the employee and therefore liable for confiscation. However, the Tribunal disagreed, stating that the treatment of the goods as baggage was a result of the initial incorrect classification. The Tribunal directed the authorities to guide the appellant to follow the proper procedure for importing the goods for commercial use, setting aside the confiscation and imposing no redemption fine. The appeal was allowed, providing consequential relief to the appellant.