1966 (2) TMI 28 - HC - Customs

Summary

Issues Involved:
1. Whether the mare "Jury Maid" was imported as personal baggage and thus exempt from import trade control restrictions.
2. Whether the Customs authority was required to provide the appellant an option to pay a fine in lieu of confiscation under Section 125 of the Customs Act, 1962.

Issue-wise Detailed Analysis:

1. Import as Personal Baggage:
The appellant contended that the mare "Jury Maid" was imported as personal baggage and thus exempt from import trade control restrictions under clause 4 of the Government of India, Ministry of Commerce and Industries, Import Trade Control Public Notice No. 1-I.T.C. (PN)/61, dated 2nd January 1961. The Customs authority, however, rejected this argument, stating that the mare was not a "pet animal" but was imported for business purposes. The court upheld this view, noting that the mare was leased to the appellant for breeding purposes and was to be returned to its owner in England. The court emphasized that the term "pet animal" implies an animal domesticated and kept as a favorite or treated with fondness, which was not the case here. The mare was part of a business deal, and the appellant had not even seen the mare before its arrival in India. Thus, the mare did not qualify as a "pet animal" under clause 4 of the said notice and was not exempt from import trade control restrictions.

2. Option to Pay Fine in Lieu of Confiscation:
The appellant argued that under Section 125 of the Customs Act, 1962, the Customs authority was required to provide an option to pay a fine in lieu of confiscation. The court examined the relevant provisions, including Section 111(d) of the Customs Act, which states that goods imported contrary to any prohibition imposed by law are liable to confiscation. The court also considered the definition of "prohibited goods" under Section 2(33) of the Customs Act, which includes goods subject to conditions for importation. The court concluded that the importation of the mare without a licence constituted a violation of the Imports and Exports (Control) Act, 1947 and the Import (Control) Order, 1955. This violation rendered the mare "prohibited goods" under Section 111(d). Consequently, the adjudging officer had the discretion to impose a fine or not and was not bound to offer an option to pay a fine in lieu of confiscation. The court found that the Customs authority acted within its discretion in confiscating the mare without offering the option to pay a fine.

Conclusion:
The court dismissed the appeal, affirming the Customs authority's decision to confiscate the mare "Jury Maid" and impose a penalty on the appellant. The mare was not considered a "pet animal" exempt from import trade control restrictions, and the Customs authority was not obligated to provide an option to pay a fine in lieu of confiscation. The court also noted that the mare had died after giving birth to a foal, and the dispute over the foal's custody was not addressed in this judgment.