2020 (3) TMI 651 - CGOVT - Customs

Bonafide baggage or not - Import of Drones - Section 79 of the Customs Act, 1962 - HELD THAT - It is found that the Commissioner (Appeals) has rightly observed that the drones and their accessories imported by the applicant do not constitute a part of bona fide baggage in terms of Section 79 of Customs Act, 1962 read with para 2.26 of Foreign Trade Policy (FTP), 2015-20 which defines the bona fide baggage which can be brought by a passenger without any authorisation by the concerned authorities. The Government holds that the benefit of free allowance of ₹ 50,000/- under the Baggage Rules has been wrongly extended by the adjudicating authority to the applicant since drones and their accessories cannot be cleared as baggage . The revision application filed by the applicant is rejected and the order of the Commissioner (Appeals) is upheld - The Department is directed to recover the differential duty from the applicant on the said accessories.

Summary

Issues:
- Interpretation of Customs Act, 1962 regarding clearance of goods as bona fide baggage
- Application of Baggage Rules and Foreign Trade Policy on imported items
- Validity of free allowance under Baggage Rules for imported drones and accessories

Interpretation of Customs Act, 1962 regarding clearance of goods as bona fide baggage:
The case involved an individual who imported drones and accessories without the necessary permissions from DGCA and import licenses from DGFT. The Assistant Commissioner of Customs ordered absolute confiscation of the drones but allowed the release of accessories after payment of duty. The Commissioner (Appeals) later overturned this decision, stating that the benefit of free allowance was wrongly given as the items did not qualify as bona fide baggage under Section 79 of the Customs Act, 1962. The government upheld this decision, emphasizing that the drones and accessories did not meet the criteria for clearance as baggage under the law.

Application of Baggage Rules and Foreign Trade Policy on imported items:
The government referred to Para 2.26 of the Foreign Trade Policy, 2015-20, which defines bona fide baggage as household goods and personal effects that can be imported as part of passenger baggage. Additionally, Rule 3 of the Baggage Rules, 2016 under Section 79 of the Customs Act specifies the duty-free allowance for certain articles carried by passengers. The government concluded that the drones and accessories imported by the individual did not fall under the category of bona fide baggage as defined by the relevant regulations, leading to the rejection of the free allowance granted by the adjudicating authority.

Validity of free allowance under Baggage Rules for imported drones and accessories:
The revision application filed by the individual was rejected, and the decision of the Commissioner (Appeals) was upheld. The government directed the recovery of the differential duty from the individual on the accessories, emphasizing that the adjudicating authority wrongly extended the benefit of free allowance under the Baggage Rules. The judgment focused on the legal interpretation of the Customs Act, Baggage Rules, and Foreign Trade Policy to determine the eligibility of imported items for duty-free clearance as bona fide baggage.