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TMI BlogCONFISCATION OF GOODS UNDER CUSTOMS ACT, 1962X X X X Extracts X X X X X X X X Extracts X X X X ..... CONFISCATION OF GOODS UNDER CUSTOMS ACT, 1962 - By: - Mr. M. GOVINDARAJAN - Customs - Import - Export - SEZ - Dated:- 15-2-2017 - - Seizure Section 110 of Customs Act, 1962 ( Act for short) provides for seizure of goods, documents and things. Section 110 (1) provides that if the proper officer has reason to believe that any goods are liable to confiscation under this Act, he may seize such goods. Where it is not practicable to seize any such goods, the proper officer may serve on the owner of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer. The provisions of Section 110 make it clear that seizure precedes confiscation and any goods cannot be confiscated directly. In Union of India V. Sri Sai Trading Company 2015 (11) TMI 683 - PATNA HIGH COURT the High Court held that Section 109 of the Act empowers any officer of the Customs appointed for any once adjoining the land frontier of India to produce the order under Section 47 permitting clearance of the goods. Section 110 empowers the proper officer to seize such goods if he has reasonable belief that any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods are liable to confiscation under the Act. Section 111 of the Act provides for confiscation of improperly imported goods. Mere fact that betel nuts are not prohibited goods, it does not mean that they are not liable to confiscation under the Act when goods having seized near land frontier of Nepal without clearance order. In Principal Commissioner of Customs (Import), ICD V. Santhosh handloom 2016 (5) TMI 125 - DELHI HIGH COURT the High Court held that the only provision under Customs Act for seizure of goods is Section 110 . This section also provides for vacation of seizure on non issuance of show cause notice within six months with power to extend period by another six months. It is settled law that for extended time, the owner of goods is required to be put to notice. The proceedings relating to confiscation of goods being of penal in nature, show cause notice is required to be served only on the owner of goods or on person specially authorized by owner for this purpose. Sale of seized goods The provisions of the Act does not provide for the sale of seized goods except the perishable goods. Section 110 (1A) provides that the Central Gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment may, having regard to- the perishable or hazardous nature of any goods; depreciation in the value of the goods with the passage of time; constraints of storage space for the goods; or any other relevant considerations, by notification in the Official Gazette, specify the goods or class of goods which shall, as soon as may be after its seizure, be disposed of by the proper officer in such manner as the Central Government may, from time to time, determine after following the procedure hereinafter specified. Show cause notice Section 110(2) provides that within six months from the seizure of the goods show cause notice under Section 124 is to be given the person concerned for further action. If no show cause notice is issued within six months the goods shall be returned to the person from whose possession they were seized. The period of six months may, on sufficient cause being shown, be extended by the Principal Commissioner of Customs or Commissioner of Customs for a period not exceeding six months. Provisional release of goods Section 110A provides that any goods, documents or things seized under section 110 , may, pending the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the adjudicating authority, be released to the owner on taking a bond from him in the proper form with such security and conditions as the adjudicating authority may require. Confiscation Chapter XIV of the Customs Act, 1962, ( Act for short) deals with the confiscation of goods and conveyances and imposition of penalties. The following are liable for confiscation- Section 111 Confiscation of improperly imported goods, etc., Section 113 Confiscation of goods attempted to be improperly exported, etc., Section 115 Confiscation of conveyances; Section 118 Confiscation of packages and their contents; Section 119 Confiscation of goods used for concealing smuggled goods; Section 120 Confiscation of smuggled goods notwithstanding any change in the form etc., Section 121 Confiscation of sale proceeds of smuggled goods. Confiscation of improperly imported goods Section 111 provides that the following goods brought from a place outside India shall be liable to confiscation: - (a) any goods imported by sea or air which are unloaded or attempted to be unloaded at any place other than a customs port or customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airport for the unloading of such goods; (b) any goods imported by land or inland water through any route other than a route specified in a notification issued for the import of such goods; (c) any dutiable or prohibited goods brought into any bay, gulf, creek or tidal river for the purpose of being landed at a place other than a customs port; (d) any goods which are imported or attempted to be imported or are brought within the Indian customs waters for the purpose of being imported, contrary to any prohibition imposed by or under this Act or any other law for the time being in force; (e) any dutiable or prohibited goods found concealed in any manner in any conveyance; (f) any dutiable or prohibited goods required to be mentioned under the regulations in an import manifest or import report which are not so mentioned; (g) any dutiable or prohibited goods which are unloaded from a conveyance in contravention of the provisions of section 32 , other than goods inadvertently unloaded but included in the record kept under Section 45(2) ; (h) any dutiable or prohibited goods unloaded or attempted to be unloaded in contravention of the provisions of section 33 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 34 ; (i) any dutiable or prohibited goods found concealed in any manner in any package either before or after the unloading thereof; (j) any dutiable or prohibited goods removed or attempted to be removed from a customs area or a warehouse without the permission of the proper officer or contrary to the terms of such permission; (k) any dutiable or prohibited goods imported by land in respect of which the order permitting clearance of the goods required to be produced under section 109 is not produced or which do not correspond in any material particular with the specification contained therein; (l) any dutiable or prohibited goods which are not included or are in excess of those included in the entry made under this Act, or in the case of baggage in the declaration made under section 77 ; (m) any goods which do not correspond in respect of value or in any other particular with the entry made under this Act or in the case of baggage with the declaration made under section 77 in respect thereof, or in the case of goods under transshipment, with the declaration for transshipment referred to in the proviso to Section 54(1) (n) any dutiable or prohibite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d goods transited with or without transshipment or attempted to be so transited in contravention of the provisions of Chapter VIII ; (o) any goods exempted, subject to any condition, from duty or any prohibition in respect of the import thereof under this Act or any other law for the time being in force, in respect of which the condition is not observed unless the non-observance of the condition was sanctioned by the proper officer; (p) any notified goods in relation to which any provisions of Chapter IVA or of any rule made under this Act for carrying out the purposes of that Chapter have been contravened. In Penshbao Wang Private Limited V. Commissioner of Customs (Seaport Import), Chennai 2016 (3) TMI 295 - CESTAT CHENNAI the Tribunal held that the import of Pesticides are prohibited under Section 17(1)(a) of Insecticides Act, 1968. The appellants have not obtained registration from the Central Insecticides Board for the import of pesticides. The Tribunal held that the confiscation of the goods ordered by the Adjudicating Authority under Section 111(d) of the Act is liable to be upheld. In Commissioner of Customs, Chennai V. Kamatchi Sponge P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower Corporation Limited 2016 (3) TMI 220 - CESTAT CHENNAI the respondent filed bill of entry for import of goods declaring as Heavy Melting Steel Scrap . On examination the goods were found to be 10% scrap and 90% secondary welded pipes. Samples were drawn and sent to private laboratory. Based on the test report, the Adjudicating Authority confiscated the goods and imposed redemption fine and personal penalty and also rejected the declared value and enhanced the value. The Commissioner (Appeals) set aside the order and directed the Adjudicating Authority to release the goods after ensuing mutilation of the entire goods at the cost of the appellant in the presence of customs authorities. The Tribunal held that the purchase order/contract, confirmation by supplier, pre-shipment inspection certificate and other shipping document clearly show that the goods are HMSS. The test report of the private laboratory is not reliable as the said laboratory is not approved by Customs. Even otherwise secondary welded pipes are nothing but scrap. The importer is not a trader to import goods in guise of scrape but bona fide actual use. The Tribunal upheld the order of Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r (Appeals). In Kuber Casting Private Limited V. Commissioner of Customs, Amritsar 2016 (2) TMI 981 - CESTAT CHANDIGARH the Tribunal found that a part of the consignment was found re-rollable scrap but the appellant has placed an order for supply of heavy melting scrap and the certificate of origin also certifies the same. The appellant has actually used the said goods as heavy melting scrap. Without any contrary evidence on record, the Tribunal held that goods are not liable for confiscation on this ground. Further the charge of misdeclaration of weight the Tribunal held that the goods are rightly held liable for confiscation by the lower authorities. As the goods are not restricted goods, the Tribunal reduced the redemption fine to ₹ 20,000/- from ₹ 160000/- and penalty to ₹ 10000 from ₹ 110000/-. In Xing International V. Commissioner of Customs, New Delhi (Import General) 2016 (5) TMI 914 - CESTAT NEW DELHI the appellant had placed order for LED panels. The examination report of customs officers and re-examination report categorically stated that the goods were branded LED Panels and encased in TV casing but withou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the speakers, without the remote controls, with the power cables, without the mother board and without the sockets. The box in which the goods were contained is also found to have been labeled LED panel as per the photocopy of one side of the box shown during personal hearing. As per the sale invoices the appellant has been selling these goods to the various traders in the name of LED panels only. LED panels devoid of speakers, remote controls, power cables, mother board and socket can scarcely be called as having essential characteristics of television. The Tribunal was of the view that the goods have to be treated as LED panels and not as LED television. LED panels are freely importable and do not require any BIS registration. As such these goods are not liable for confiscation. The Tribunal set aside the impugned order. Confiscation of improperly exported goods Section 113 gives powers to the authorities for confiscation of improperly exported goods. According to this section any goods- (a) attempted to be exported by sea or air from any place other than a customs port or a customs airport appointed for the loading of such goods; (b) attempted to be exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted by land or inland water through any route other than a route specified in a notification issued for the export of such goods; (c) brought near the land frontier or the coast of India or near any bay, gulf, creek or tidal river for the purpose of being exported from a place other than a land customs station or a customs port appointed for the loading of such goods; (d) attempted to be exported or brought within the limits of any customs area for the purpose of being exported, contrary to any prohibition imposed by or under this Act or any other law for the time being in force; (e) found concealed in a package which is brought within the limits of a customs area for the purpose of exportation; (f) any goods which are loaded or attempted to be loaded in contravention of the provisions of section 33 or section 34; (g) loaded or attempted to be loaded on any conveyance, or water-borne, or attempted to be water-borne for being loaded on any vessel, the eventual destination of which is a place outside India, without the permission of the proper officer; (h) which are not included or are in excess of those included in the entry made under this Act, or in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... baggage in the declaration made under section 77 ; (i) entered for exportation which do not correspond in respect of value or in any material particular with the entry made under this Act or in the case of baggage with the declaration made under section 77; (j) entered for exportation under claim for drawback which do not correspond in any material particular with any information furnished by the exporter or manufacturer under this Act in relation to the fixation of rate of drawback under section 75 ; (k) on which import duty has not been paid and which are entered for exportation under a claim for drawback under section 74 ; (l) cleared for exportation which are not loaded for exportation on account of any willful act, negligence or default of the exporter, his agent or employee, or which after having been loaded for exportation are unloaded without the permission of the proper officer, such goods are liable for confiscation. In Umeshwar Prasad V. Commissioner of Central Excise Service Tax, Patna 2016 (5) TMI 601 - CESTAT KOLKATA the seized goods were meant for illegal export to Nepal. The goods were stored in godown situated close to Indo-Nep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al border. The statements of the owner of the godown and the wife of the appellant No. 1 reveal that the seized goods were meant for illegal export to Nepal. Opportunity was not given to the appellants to cross examine the persons who gave statements. However the documentary evidences reveal that the appellants illegally exported similar goods to Nepal in tractor trolleys. With effect from 14.05.2013, the provisions of Section 113 (c) are applicable to any goods brought near to land frontier for purpose of being exported. The appellants activities have to be considered as an attempt to export and not a simple preparation. The Tribunal upheld the confiscation and penalty. In Datkar Sons Shipping Agency P Limited V. commissioner of Customs (Export), Nhava Sheva 2012 (9) TMI 949 - CESTAT MUMBAI the Tribunal held that Section 50 51 of the Act casts a responsibility on the exporter as well as the agent to ensure the goods are exported after completion of all customs formalities such as assessment, examination and issue of LEO. In the instant case the fact remains that the goods were loaded to the vessel for export and the vessel set sail before the Let Expo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt Order was given by Customs. Therefore it is a clear breach of the provisions of the Customs Act. Consequently the goods are liable to confiscation under Section 113 (h) of the Customs Act and the appellant is liable to penalty under Section 114 (iii) . There is no mens rea required for imposition of penalty under Section 114 . Any action or omission on the part of any person which makes the goods liable to confiscation attracts penalty. In Fayaz Gulam Godil V. Union of India 2016 (6) TMI 628 - BOMBAY HIGH COURT the High Court held that it is the undisputed fact that foreign currency was taken out without complying with the provisions of FEMA and hence becoming prohibited and smuggled goods in terms of Section 2(33) and 2(39) of the Customs Act, 1962 . Thus the Customs authorities had a right to issue show cause notice culminating in confiscation and penalty. No other provision other than Section 113 is applicable for confiscation of goods. As regards, redemption, discretion to grant redemption or not was that of adjudicating authority which has been rightly exercised. In view of complicity and involvement of appellants in the said smuggling, pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty is also rightly imposed. The Tribunal having considered all these aspects including that of retracted statements of appellants, its order confirming absolute confiscation and penalty cannot be called perverse requiring the interference of High Court. In MD Raju Hussain V. Commissioner of Customs (Preventive), Guwahati 2015 (10) TMI 2333 - CESTAT KOLKATA the Agarwood was seized and confiscated by the Revenue on allegation of its attempted export by the appellant. The Tribunal held that the said goods, which are neither notified, nor specified, not seized in customs area. The export prohibition is applicable only when goods are brought to customs area for export. The alleged illegal acquisitions and movement in India of these goods may be violation of any other law but not of Customs Act. The applicant is not having any valid visa on his passport or ticket to go abroad. There is no evidence on record to indicate that the appellant is indulging in illegal export of the said goods on his earlier two visits abroad. The activities of the appellant may be suspicious, but not enough to hold charge of attempted export. In the absence of positive evidence, mere intera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction/preparedness cannot be considered as attempted export. The Tribunal set aside the seizure and confiscation. In Good Year South Asia Tyres Private Limited V. Commissioner of Customs, ICD, Maliwada, Aurangabad 2016 (1) TMI 427 - CESTAT MUMBAI the Tribunal held that it is not in dispute that the moulds were sold and exported. The relevant para 2.3 of the Handbook Procedure makes no distinction between sale within India and sale outside India and therefore, there is violation of provisions of Import and Export Policy/Hand book of Procedure. The Tribunal upheld the confiscation of the goods. The Tribunal reduced the redemption fine from ₹ 1,24,000/- to ₹ 50,000/-. The Tribunal did not find it to be a fit case for imposing penalty and set aside the same. Confiscation of conveyances Section 115 provides the list of conveyances that are liable confiscation as detailed below- (a) any vessel which is or has been within the Indian customs waters, any aircraft which is or has been in India, or any vehicle which is or has been in a customs area, while constructed, adapted, altered or fitted in any manner for the purpose of concealing goods; (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any conveyance from which the whole or any part of the goods is thrown overboard, staved or destroyed so as to prevent seizure by an officer of customs; (c) any conveyance which having been required to stop or land under section 106 fails to do so, except for good and sufficient cause; (d) any conveyance from which any warehoused goods cleared for exportation, or any other goods cleared for exportation under a claim for drawback, are unloaded, without the permission of the proper officer; (e) any conveyance carrying imported goods which has entered India and is afterwards found with the whole or substantial portion of such goods missing, unless the master of the vessel or aircraft is able to account for the loss of, or deficiency in, the goods. Confiscation of packages Section 118 provides that if a package contains the goods, which are liable to confiscation, such packages along with any other goods imported in the package is liable to be confiscated. Similarly where in the packages brought within the customs area in which the goods liable to be confiscated are there, then such packages along with other goods contained therein are also liable for confiscation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Confiscation of goods used for concealing smuggled goods Section 119 provides that any goods used for concealing smuggled goods shall also be liable to confiscation. Confiscation of smuggled goods Section 120 provides for the confiscation of smuggled goods even there is any change in their form. If the smuggled goods are mixed with other goods, by which separation of smuggled goods is not possible, the whole of the goods is liable for confiscation. If the owner of the goods proves that he had no knowledge or reason to believe that they included any smuggled goods, only such part of the goods the value of which is equal to the value of the smuggled goods shall be liable to confiscation. Confiscation of sale proceeds of smuggled goods Section 121 provides that where any smuggled goods are sold by a person having knowledge or reason to believe that the goods are smuggled goods, the sale-proceeds thereof shall be liable to confiscation. Penalties Penalties in respect of improper importation of goods Section 112 of the Act provides that the person involved in omission or commission under the Customs Act, in relation to any g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods which renders such goods liable to confiscation under section 111 , or abets the same, or acquires possession of or is in any way concerned in carrying, removing, depositing, harboring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under section 111 , shall be liable to penalties as follows- (a) in the case of goods in respect of which any prohibition is in force under the Customs Act or any other law for the time being in force, to a penalty not exceeding the value of the goods or five thousand rupees, whichever is the greater; (b) in the case of dutiable goods, other than prohibited goods, the person shall be liable to a penalty not exceeding the duty sought to be evaded on such goods or five thousand rupees, whichever is the greater; (c) in the case of goods or baggage in respect of which misdeclaration of value has been done, to a penalty not exceeding the difference between the declared value and the value thereof or five thousand rupees, whichever is the greater; (d) in the case of goods falling both under clauses (i) and (iii), to a penalty not ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeding the value of the goods or the difference between the declared value and the value thereof or five thousand rupees, whichever is the highest; (e) in the case of goods falling both under clauses (ii) and (iii), to a penalty not exceeding the duty sought to be evaded on such goods or the difference between the declared value and the value thereof or five thousand rupees, whichever is the highest. Penalties in respect of improper exportation of goods Section 114 provides that the person involved in commission or omission, in relation to any goods, which renders such goods liable to confiscation under section 113 , or abets the same, shall be liable to penalties in different types of cases as follows:- (i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty not exceeding the value of the goods or five thousand rupees, whichever is the greater; (ii) in the case of dutiable goods, other than prohibited goods, to a penalty not exceeding the duty sought to be evaded on such goods or five thousand rupees, whichever is the greater; (iii) in the case of goods under claim f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or drawback, to a penalty not exceeding the amount of drawback claimed or five thousand rupees, whichever is the greater. Penalty for Short-levy or Non-levy of duty in certain cases In cases of non-levy or short levy of duty or where the interest has not been charged or paid or has been part paid or the duty or interest has been erroneously refunded by reason of collusion or any wilful mis-statement or suppression of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under sub-section (2) of section 28 shall also be liable to pay a penalty equal to the duty or interest so determined. However, where such duty or interest, as the case may be, and the interest payable thereon, is paid within thirty days from the date of the communication of the order, the amount of penalty to be paid shall be reduced to 25% of the duty or interest. If the duty or interest determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the Court, then, the duty or interest as reduced or increased, as the case may be, shall be taken into account. Also, in a case where the duty or inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest determined to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the Court, then, the benefit of reduced penalty shall be available if the amount of the duty or the interest so increased, along with the interest payable thereon, and 25% of the consequential increase in penalty have also been paid within thirty days of the communication of the order. Where any penalty has been levied under this section, no penalty shall be levied under section 112 or section 114. Penalty for not accounting for Goods If any goods loaded in a conveyance for importation into India, or any goods transshipped under the provisions of this Act or coastal goods carried in a conveyance, are not unloaded at their place of destination in India, or if the quantity unloaded is short of the quantity to be unloaded at that destination, and if the failure to unload or the deficiency is not accounted for to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs, the person-in-charge of the conveyance shall be liable to- (a) in the case of goods loaded in a conveyance for importation into India or goods tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansshipped under the provisions of this Act, to a penalty not exceeding twice the amount of duty that would have been chargeable on the goods not unloaded or the deficient goods, as the case may be, had such goods been imported; (b) in the case of coastal goods, to a penalty not exceeding twice the amount of export duty that would have been chargeable on the goods not unloaded or the deficient goods, as the case may be, had such goods been exported. Penalties for contravention, etc., not expressly mentioned Any person who contravenes any provision of this Act or abets any such contravention or who fails to comply with any provision of this Act, with which it was his duty to comply, where no express penalty is elsewhere provided for such contravention or failure, shall be liable to a penalty not exceeding ten thousand rupees. Adjudication procedure Section 122 of the Act provides the pecuniary jurisdiction for the officers to adjudicate for confiscation or penalty as detailed in the given table- Sl.No. Name of the Officer Value of the goods liable for confiscation 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A Gazetted Officer of Customs lower in rank than an Assistant Commissioner of Customs or Deputy Commissioner of Customs. Up to ₹ 50,000/- 2 Assistant Commissioner of Customs or Deputy Commissioner of Customs; Up to ₹ 5,00,000/- 3 Principal Commissioner of Customs or] Commissioner of Customs or a Joint Commissioner of Customs; Without limit Section 122A provides that the adjudicating authority shall, in any proceeding under this Chapter or any other provision of this Act, give an opportunity of being heard to a party in a proceeding, if the party so desires. The adjudicating authority may, if sufficient cause is shown at any stage of proceeding referred to in sub-section (1), grant time, from time to time, to the parties or any of them and adjourn the hearing for reasons to be recorded in writing. No such adjournment shall be granted more than three times to a party during the proceeding. Section 123 provides for burden of proof in certain cases. Where any goods to which this section applies are seized under this Act in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he reasonable belief that they are smuggled goods, the burden of proving that they are not smuggled goods shall be in a case where such seizure is made from the possession of any person, - on the person from whose possession the goods were seized; and if any person, other than the person from whose possession the goods were seized, claims to be the owner thereof, also on such other person; in any other case, on the person, if any, who claims to be the owner of the goods so seized. This section shall apply to gold, and manufactures thereof, watches, and any other class of goods which the Central Government may by notification in the Official Gazette specify. In Commissioner of Customs (Preventive), Lucknow V. Naeem Ahmad - 2016 (5) TMI 600 - CESTAT ALLAHABAD the preventive officer intercepted a vehicle and found that mobile phones of different brands, both Indian and Chinese with accessories were being transported. On questioning the person in occupation of the goods and vehicle they could not produce valid documents regarding the licit purchases or import of the Chinese and Indian original goods in question. The Adjudicating Authority held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the goods were held liable to confiscation. The Tribunal held that burden of proof under Section 123 of Customs Act is on the Revenue that the seized goods brought illegally by smuggling. The documentary evidence produced by the respondent in respect of licit import of seized goods found to be correct. The Department failed to bring tangible evidence to prove smuggled nature of goods in question. The Tribunal set aside the order of confiscation of goods and penalty sustainable. In Commissioner of Customs, Central Excise Service Tax, Siliguri V. Ratan Kumar Sethia 2016 (2) TMI 53 - CESTAT KOLKATA the Tribunal held that the calculators of foreign original are liable to confiscation in view of Section 123 of the Act . As there is no absolute prohibition on importation of these goods, these calculations cannot be confiscated absolutely. The importer is to be given an option to redeem the same on imposition of redemption fine under Section125 of the Act by the Adjudicating Authority. Section 124 requires the issue of show cause notice before confiscation of goods. No order confiscating any goods or imposing any penalty on any person shall be made under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Chapter unless the owner of the goods or such person is given a notice in writing with the prior approval of the officer of Customs not below the rank ofan Assistant Commissioner of Customs, informing him of the grounds on which it is proposed to confiscate the goods or to impose a penalty; is given an opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the grounds of confiscation or imposition of penalty mentioned therein; and is given a reasonable opportunity of being heard in the matter. The notice referred to in clause (a) and the representation referred to in clause (b) may, at the request of the person concerned be oral. Section 125 provides option to pay fine in lieu of confiscation. Whenever confiscation of any goods is authorized by this Act, the officer adjudging it may, in the case of any goods, the importation or exportation whereof is prohibited under this Act or under any other law for the time being in force, and shall, in the case of any other goods, give to the owner of the goods or, where such owner is not known, the person from whose possession or custody such goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been seized, an option to pay in lieu of confiscation such fine as the said officer thinks fit . Such fine shall not exceed the market price of the goods confiscated, less in the case of imported goods the duty chargeable thereon. Where any fine in lieu of confiscation of goods is imposed, the owner of such goods or the person, shall, in addition, be liable to any duty and charges payable in respect of such goods. Section 126 provides that when any goods are confiscated under this Act, such goods shall thereupon vest in the Central Government. The officer adjudging confiscation shall take and hold possession of the confiscated goods. Section 127 provides that the award of any confiscation or penalty under this Act by an officer of customs shall not prevent the infliction of any punishment to which the person affected thereby is liable under the provisions of Chapter XVI of this Act or under any other law. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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