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TMI Blog2012 (9) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions, it becomes quite clear that in this case, whatever is brought by a passenger from abroad is considered as baggage and the passenger is required to make a declaration under Section 77 and till the goods are declared and cleared from Customs area (airport) after declaration, the goods remain imported goods and the person remains the importer. Going by this analogy also, the goods in this case can be considered as imported goods only and as already mentioned earlier, Section 129A provides that the Tribunal has no jurisdiction in respect of any goods imported or exported as baggage - the appeal has to be rejected as not maintainable on the Tribunal having no jurisdiction and since the jurisdiction lies with Government of India Reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported as passenger baggage. The second submission he would like to make is that according to Foreign Trade Policy, only bonafide household goods and personal effects may be imported as a part of passenger baggage and further declaration is also required to be filed. Since no declaration was filed in this case, the goods cannot be considered to have been imported goods at all and they have to be considered as smuggled goods. Further, the ld.Advocate also relied upon the definition of the goods under Section 2(22) of Customs Act, 1962, according to which the goods includes baggage also. Therefore, the expression imported goods would include the imported baggage also and therefore once the goods are not imported goods but smuggled goods, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e baggage rules. Section 78 of Customs Act, 1962 requires the passenger to give a declaration and the declaration under Section 77 of Customs Act, 1962 provides that the owner of any baggage for the purpose of clearances has to make a declaration of his contents to the proper officer. The sum and substance of the provisions discussed above is that a passenger is required to bring bonafide household articles which will be allowed as per the terms and conditions in the baggage rules and in the case of goods imported as baggage, the provisions of Section 77 would apply which provides that the declaration of baggage to the proper officer is enough. 6. The contention of the ld.Counsel was that these are smuggled goods and therefore cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vides that the Tribunal has no jurisdiction in respect of any goods imported or exported as baggage. 7. Ld.Counsel would try to convince us that the goods, if they are not declared, become smuggled goods. However, the definition of imported goods would clearly show that so long as the goods are pending clearance by Customs from Customs area, they remain imported goods. Only when they are brought out of the Customs area without payment of duty and if they are seized outside Customs area, they become smuggled goods. The observations of Hon'ble Supreme Court in Para 7 of the judgment in the case of M. Ambalal Co. also would support the conclusion reached above, which is reproduced below. 7. Dutiable goods are goods whose import is perm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering them as baggage. The Tribunal has denied it on the ground that the seizure had not taken place in the Customs area but outside the Customs area and the Revenue has no evidence to show that the goods have been brought as baggage. The observations of the Tribunal in a portion of Paragraph 5.5 is relevant is and is reproduced below. 5.5 Secondly, there is no evidence that the goods have been imported by passengers in their baggage except for a statement given by the appellant which is not conclusive to say that the goods have been actually imported as passenger s baggage. Further as per the said statement - diamonds used to be imported/smuggled personally or through carriers by air and by other means . Since the appellants failed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as baggage, the other methods of assessment can be considered. In that case, it was held that the goods were not brought as baggage and therefore the Department should not levy tax treating diamonds as part of baggage. In this case, there is no dispute at all that the gold jewellery was brought as a part of baggage and not declared and therefore they remained imported goods since they were not cleared out of the Customs area on payment of duty nor were they smuggled out of Customs area to become smuggled goods without evidence put forth to show that they were a part of baggage. 10. Under these circumstances, it is quite clear that the submissions made by ld.Counsel that the Tribunal has jurisdiction, cannot be accepted. 11. As reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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