Tribunal allows redemption of confiscated gold ornaments with reduced fine, citing passenger's import ineligibility.

The Tribunal allowed the appellant the option of redeeming confiscated gold ornaments upon payment of a reduced fine, finding the initial confiscation without redemption invalid due to the passenger's import ineligibility. The penalty was reduced from Rs. 2,50,000 to Rs. 50,000, with the appellant granted the opportunity to redeem the ornaments by paying Rs. 1,25,000. The Tribunal asserted jurisdiction to decide the matter concerning the gold ornaments, emphasizing that goods not meeting baggage criteria could be subject to confiscation but still fall under the Tribunal's purview for appeal disposal.

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Issues involved:
The refusal to grant redemption of gold ornaments upon confiscation, jurisdiction of the Tribunal to dispose of the appeal.

Judgment Summary:

Issue 1: Refusal to grant redemption of gold ornaments

The appellant arrived in Goa from Bangkok carrying 417 gms. of gold ornaments valued at Rs. 12,10,359, which were confiscated by customs authorities. The original authority held the gold ornaments liable to confiscation due to the passenger's lack of eligibility for import through baggage and imposed a penalty of Rs. 2,50,000 under section 112 of the Customs Act, 1962. The appellant argued that the gold ornaments should have been offered for redemption after confiscation under section 125 of the Act. It was contended that there was no valid ground for confiscation or penalty as the appellant had not concealed the goods and had followed the proper procedure upon arrival.

Issue 2: Jurisdiction of the Tribunal

The Tribunal addressed the jurisdictional question regarding the disposal of the appeal. The proviso to section 129A(1) of the Customs Act, 1962 specifies that appeals related to baggage fall under the jurisdiction of the Government of India, not the Tribunal. The definition of 'baggage' under the Act includes goods for personal use or as gifts within specified value limits. Any item not meeting these criteria would not qualify as baggage. The Tribunal clarified that goods subject to segregation for duty rate determination would not fall under the purview of baggage, allowing the Tribunal's jurisdiction. The Tribunal concluded that it had the authority to decide the matter concerning the gold ornaments.

Conclusion:

The Tribunal found that the gold ornaments were liable for confiscation due to the passenger's ineligibility for import. However, as gold ornaments are not restricted for import, confiscation without the option of redemption was deemed invalid. The appellant was granted the option of redemption upon payment of a reduced fine of Rs. 1,25,000, with the penalty reduced from Rs. 2,50,000 to Rs. 50,000. The appeal was disposed of accordingly.

(Order pronounced in the open court on 28/09/2023)

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