1983 (6) TMI 178 - AT - Customs

Court finds procedural flaws, overturns confiscation & penalty, orders release of goods

The appeal was allowed as the court found significant omissions in the proceedings, including the involvement of a minor child in explaining the ... - Issues:1. Confiscation of assorted fabrics worth &8377; 6162.2. Imposition of a penalty of &8377; 1000 on the appellant.3. Validity of the statement recorded under Section 108 of the Customs Act.4. Waiver of show cause notice by the appellant.5. Application of Section 123 of the Customs Act in shifting the onus on the appellant.6. Consideration of the appellant's submissions regarding the nature and quantity of the confiscated goods.Analysis:1. The appellant appealed against the confiscation of assorted fabrics worth &8377; 6162 and the imposition of a penalty of &8377; 1000. The appellant, an illiterate lady, contested the correctness of the statement recorded under Section 108 of the Customs Act, arguing that it was not voluntary as it was explained by her minor sister and the waiver of the show cause notice was not understood by her. The appellant's advocate contended that the statement should not be accepted as correct due to these factors.2. The departmental representative argued that there was an admission by the appellant regarding the purchase and sale of the goods, with no evidence of legal importation provided. The representative supported the seizure and dismissal of subsequent baggage receipts, asserting that the statement on 2-6-1982 was not recorded under duress, and thus, requested the dismissal of the appeal.3. The appellant's advocate highlighted that the fabrics were assorted and in a reasonable quantity, emphasizing that the appellant had returned from a foreign trip shortly before the seizure. The advocate argued that the appellant's claim of bringing the goods as part of her baggage was not considered by the Asstt. Collector, and requested the release of the goods without any fine and the setting aside of the penalty order.4. The judgment analyzed the submissions from both sides and found merit in the appellant's argument regarding the nature and quantity of the confiscated goods. It was noted that the confiscated goods might have been brought under a free allowance admissible to the appellant on her return to India. The judgment also highlighted the absence of a show cause notice invoking Section 123 of the Customs Act, rendering the Asstt. Collector's reliance on Section 123 legally unfounded. The judgment concluded that there were significant omissions in the proceedings, such as the involvement of a minor child in explaining the statement, the waiver of the show cause notice, and the non-consideration of the appellant's advocate's letter. Consequently, the confiscation and penalty order were deemed unjustified, leading to the direction for the release of goods to the appellant and the refund of the penalty amount. The appeal was allowed based on these grounds.