2012 (3) TMI 205 - HC - Customs

Import of Gold without deceleration and payment of duty - the petitioner/passenger at the green channel was suspected as trying to clear dutiable goods without declaration and payment of duty - baggage was checked found concealed 10 gold bars with foreign markings wrapped in carbon paper each weighing 10 tolas - Held that - the petitioner is a Srilankan Passport Holder and is not entitled to bring gold into India - the gold in question was not declared to the Customs on arrival - there was an attempt to smuggle - the petitioner being a foreign national is not entitled to import the gold in terms of the 1993 order as it will apply only to the passenger of Indian origin or a passenger holding a valid passport issued under the Passport Act, 1967.- Writ Petition is dismissed

Issues:
1. Confiscation and penalty imposed on gold bars imported by a foreign national.
2. Eligibility of a foreign national to import gold under the Foreign Trade Order.
3. Appeal against the confiscation and penalty orders.
4. Revision application before the Central Government.
5. Plea for redemption under Section 125 of the Customs Act.
6. Comparison with previous judgments on similar cases.
7. Interpretation of eligibility criteria for importing gold.

Analysis:

1. The petitioner, a foreign national, attempted to import 10 gold bars into India without declaration, leading to their seizure and subsequent confiscation under Section 111(d), (l), and (m) of the Customs Act, 1962. The adjudicating authority justified absolute confiscation and imposed a penalty of Rs.24,000 under Section 112(a) of the Customs Act, 1962.

2. The Commissioner of Customs (Appeals) upheld the confiscation and penalty, stating that the petitioner, being a Sri Lankan national, was ineligible to bring gold into India under the Foreign Trade Order. The appeal for redemption was denied, emphasizing the attempted smuggling of gold.

3. A revision application before the Central Government reiterated the grounds raised in the appeal, arguing against the confiscation and penalty. However, the Central Government affirmed the lower authorities' decisions, emphasizing the petitioner's status as a foreign national attempting to smuggle prohibited goods.

4. The petitioner's plea for redemption under Section 125 of the Customs Act was rejected, as the attempted misuse of the facility was evident from the petitioner's statement to the Customs Officer.

5. Previous judgments, including one by the Division Bench and the Supreme Court, highlighted cases where absolute confiscation was justified in instances of attempted smuggling by passengers not meeting the eligibility criteria for importing gold.

6. The court dismissed the writ petition, emphasizing that the petitioner, as a foreign national, did not fulfill the eligibility criteria for importing gold under the Foreign Trade Order. The attempt to smuggle goods through the green channel without payment of duty justified the absolute confiscation, as established in previous judgments.

7. The petitioner's new plea regarding the entitlement of any passenger holding a valid passport to import gold was deemed misconceived, as the Notification specified that only passengers of Indian origin or holding a valid passport under the Passport Act, 1967, were eligible. The court found no merit in the petitioner's arguments and dismissed the writ petition.

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