High Court directs consolidation of Revision Petitions, upholds confiscation under Customs Act

The Rajasthan High Court directed the revisional authority to club two Revision Petitions and remitted the matter back without commenting on the merits. The absolute confiscation of gold biscuits and currency was upheld under Section 111 of the Customs Act, 1962. A penalty of Rs. 40 lacs was imposed under Section 112(a), while the penalty under Section 114AA was set aside. The release of the demand draft and Indian currency was upheld. Both Revision Applications were disposed of accordingly.

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Issues Involved:
1. Clubbing of Revision Applications
2. Confiscation of Gold Biscuits and Currency
3. Reduction and Waiver of Penalties
4. Request for Cross-Examination
5. Eligibility under Notification No. 12/2012-Customs
6. Re-export of Confiscated Goods
7. Release of Demand Draft and Indian Currency

Issue-wise Detailed Analysis:

1. Clubbing of Revision Applications
The Rajasthan High Court directed the revisional authority to club Revision Petition Nos. 375/37/B/2017-RA and 380/15-A/B/2015-RA and decide both petitions together after due notice to the petitioner. This order was issued without commenting on the merits of the case and remitted the matter back to the revisional authority.

2. Confiscation of Gold Biscuits and Currency
The Additional Commissioner of Customs, Jodhpur, ordered the absolute confiscation of seventy gold biscuits weighing 8164.80 grams valued at Rs. 2,51,89,735/-, UAE Dirham AED 1,05,410, and INR Rs. 20,000/-. The Commissioner (Appeals) upheld the confiscation of the gold bars and concurred with the adjudicating authority’s decision to deny cross-examination of witnesses and customs officers. The PAX's contention that the customs declaration form was misplaced by the customs officer was deemed baseless. The Government upheld the absolute confiscation under Section 111 of the Customs Act, 1962.

3. Reduction and Waiver of Penalties
The Commissioner (Appeals) reduced the penalty from Rs. 30 lacs to Rs. 5 lacs under Section 112 of the Customs Act, 1962 and waived the penalty under Section 114AA. The customs authorities challenged this reduction, arguing it was not commensurate with the gravity of the offense. The Government found the reduction erroneous and reinstated a penalty of Rs. 40 lacs under Section 112(a) of the Customs Act, 1962. The waiver of the penalty under Section 114AA was upheld as legally sustainable.

4. Request for Cross-Examination
The PAX requested cross-examination of customs officers and witnesses, which was initially withdrawn but later reiterated. The Government disallowed this request, stating no new facts were brought forth and citing the Supreme Court judgment in Surjeet Singh Chhabra v. UOI, which held that confession statements made before customs officers are binding even if retracted.

5. Eligibility under Notification No. 12/2012-Customs
The PAX claimed eligibility to carry up to 10 kg of gold under Notification No. 12/2012-Customs, but the Government found this incorrect. The PAX brought 8 kg of gold, exceeding the 1 kg limit for passengers returning after six months. The plea of ignorance of law was dismissed, referencing the Calcutta High Court's ruling in Provash Kumar Dey v. Inspector of Central Excise.

6. Re-export of Confiscated Goods
The PAX requested the re-export of confiscated gold bars and currency. The Government denied this request, stating the conditions under Section 80 of the Customs Act, 1962, were not fulfilled since the PAX did not make a true declaration under Section 77.

7. Release of Demand Draft and Indian Currency
The Commissioner (Appeals) allowed the release of a demand draft amounting to Rs. 12 lacs meant for deposit in the NRE Account and confiscated Indian currency amounting to Rs. 12,500/-. The Government upheld this order.

Conclusion:
1. The absolute confiscation of seventy gold biscuits, forex, and concealment material is upheld under Section 111 of the Customs Act, 1962.
2. A penalty of Rs. 40 lacs is imposed under Section 112(a) of the Customs Act, 1962.
3. The penalty under Section 114AA is set aside.
4. The release of the demand draft amounting to Rs. 12 lacs and Indian currency amounting to Rs. 12,500/- is upheld.
5. Both Revision Applications are disposed of accordingly.

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