Commercial goods cleared as baggage may face absolute confiscation and penalty where customs liability is established.

Commercial memory cards attempted to be cleared as baggage were treated as offending goods liable to confiscation under the Customs Act, 1962, because they were not eligible for baggage clearance. Absolute confiscation without an option of redemption was upheld since the goods were commercial in nature and were not the importer's own goods. Penalty under section 112 was also sustained because confiscation had been established and no material showed the penalty to be disproportionate or otherwise unjustified. The impugned order was affirmed in full.

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Issues: (i) Whether the absolute confiscation of the imported memory cards, without granting an option of redemption, was justified; (ii) whether penalty under the Customs Act, 1962 was sustainable.

Issue (i): Whether the absolute confiscation of the imported memory cards, without granting an option of redemption, was justified.

Analysis: The goods were found to be of commercial nature and not eligible for clearance as baggage. They were liable to confiscation under section 111 of the Customs Act, 1962. The fact that the goods were not the appellant's own and that they were offending goods weighed against granting any redemption option.

Conclusion: Absolute confiscation without redemption was upheld and is against the appellant.

Issue (ii): Whether penalty under the Customs Act, 1962 was sustainable.

Analysis: Once the goods were held liable to confiscation, penalty under section 112 of the Customs Act, 1962 followed. No material was shown to establish that the penalty was disproportionate or otherwise unjustified.

Conclusion: The penalty was sustained and is against the appellant.

Final Conclusion: The impugned order was affirmed in full and the appeal was dismissed.

Ratio Decidendi: Goods of commercial nature attempted to be cleared as baggage and found liable to confiscation under the Customs Act, 1962 can be absolutely confiscated, and penalty under section 112 follows where no sufficient ground is shown to disturb the adjudication.

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