1999 (8) TMI 422 - AT - Central Excise

Summary

Issues:
1. Declaration of imported goods by the appellants upon arrival in India.
2. Seizure and confiscation of undeclared gold by Customs authorities.
3. Validity of statements made by the appellants during the proceedings.
4. Confiscation of gold and imposition of penalties by the Commissioner.
5. Redemption of confiscated gold and payment of fines.
6. Assessment of penalties imposed on the appellants.

Issue 1 - Declaration of imported goods:
The appellants, upon arrival in India, were required to declare the goods they imported. While Shri G.N. Patel declared some dutiable articles and 5 kgs. of gold, a subsequent examination revealed a total of 9.220 kgs. of gold, including 4.220 kgs. that were not declared with intent to evade duty. Smt. Savitriben Patel admitted to concealing gold biscuits in the trousers' pockets. The Commissioner's order confiscated the undeclared gold under Customs Act provisions.

Issue 2 - Seizure and confiscation of gold:
The Customs authorities seized the entire quantity of gold due to the undeclared portion. The Commissioner, based on the findings, confiscated the gold under Sections 111(l) and 111(m) of the Customs Act, 1962, and imposed hefty penalties on both appellants.

Issue 3 - Validity of statements made by the appellants:
The statements voluntarily made by Shri G.N. Patel and Smt. Savitriben Patel were considered admissible evidence. The appellants did not retract their statements even after release from Customs custody. The Tribunal upheld the confiscation orders based on the admissibility of the statements and the lack of evidence of duress or torture.

Issue 4 - Confiscation and penalties imposed by the Commissioner:
The Commissioner's order confiscated the gold absolutely, leading to an appeal. The Tribunal reviewed past judgments where gold was released on payment of redemption fines. Considering the appellants were the owners, not mere carriers, the Tribunal set aside the confiscation orders and directed the release of gold on payment of a fine and duty.

Issue 5 - Redemption of confiscated gold and payment of fines:
The Tribunal, following precedent, allowed the redemption of the undeclared gold upon payment of a fine in lieu of confiscation. The appellants were directed to pay a fine of Rs. 2.00 lakhs in addition to the duty payable on the undeclared gold.

Issue 6 - Assessment of penalties imposed on the appellants:
Regarding penalties, Smt. Savitriben Patel's role was limited to procurement and concealment of a smaller portion of gold. Shri G.N. Patel had a history of adjudication and prosecution proceedings. The Tribunal, considering these factors, reduced the penalties imposed on both appellants significantly based on past cases and the amounts already paid by them.