2001 (3) TMI 327 - AT - Customs

Summary

Issues:
1. Import of goods described as personal and household goods.
2. Conflict in provisions of Import Policy regarding import of goods by passengers.
3. Confiscation of goods and imposition of penalty.

Issue 1: Import of goods described as personal and household goods

The appellant imported goods described as personal and household items, including spectacle frames, ballpoint pens, and watch straps. Customs officers seized the goods as they were not declared for clearance and the passenger admitted the intention to sell them for profit. The Commissioner found the goods were not baggage under the Export Import Policy 1997-2002, ordered confiscation, and imposed a penalty.

Issue 2: Conflict in provisions of Import Policy regarding import of goods by passengers

The appellant argued that while paragraph 5.6 restricted passenger imports, paragraph 5.2 allowed import of goods without restriction. The Tribunal noted a conflict between these provisions, stating that paragraph 5.2 permits any person to import freely importable goods, including passengers. The restriction in paragraph 5.6 seemed outdated, as it previously applied when passengers were allowed to import non-freely importable items as baggage.

Issue 3: Confiscation of goods and imposition of penalty

The Tribunal concluded that confiscation of freely importable goods was unwarranted and set aside the confiscation of such goods valued at Rs 4.24 lakhs. However, the confiscation of spectacle frames and other goods valued at Rs 2.76 lakhs under clause (d) of Section 111 of the Act was confirmed. The Tribunal allowed redemption of the confiscated goods upon payment of a fine based on the sale price less duty payable. The penalty imposed was confirmed based on the circumstances of the case.

In conclusion, the Tribunal allowed the appeal in part, setting aside the confiscation of freely importable goods but confirming the confiscation of certain items. The decision highlighted the conflict in the Import Policy provisions regarding passenger imports and emphasized the application of relevant legal clauses in determining confiscation and penalties.