Customs confiscation of undeclared trade goods and counterfeit watches in baggage upheld with penalties and redemption fine.

Undeclared commercial goods, cigarettes and counterfeit watches found in baggage were treated as outside bona fide baggage under Section 79 of the Customs Act, 1962, because trade-quantity and counterfeit goods are subject to customs and foreign trade restrictions. An admission under Section 108 that the watches were fake supported the finding. On that basis, confiscation of the dutiable goods with redemption option, absolute confiscation of cigarettes and fake watches, and the connected penalties were held justified, and the challenge failed in favour of Revenue.

---

---

Issues: Whether the confiscation of undeclared commercial goods and fake watches found in baggage, together with the redemption fine and penalties imposed under the Customs Act, 1962, was justified.

Analysis: The applicant carried goods through the green channel and the baggage examination revealed trade goods, cigarettes and fake watches. The record showed an admission under Section 108 of the Customs Act, 1962 that the watches were fake. Goods imported in trade quantity and of a counterfeit nature do not form part of bona fide baggage under Section 79 of the Customs Act, 1962 and are hit by the customs and foreign trade restrictions referred to in the order. On that basis, the confiscation of the dutiable goods with redemption option, the absolute confiscation of cigarettes and fake watches, and the penalties imposed were found to suffer from no infirmity.

Conclusion: The challenge failed and the confiscation and penalties were upheld in favour of Revenue.

---