1991 (5) TMI 79 - CGOVT - Customs

Customs Act: Importance of Accurate Declarations for Re-export Upheld

In RE: SHOBHA RAVI KAPOOR

In RE: SHOBHA RAVI KAPOOR - 1994 (72) E.L.T. 742 (G. O. I.) Issues:Review of order-in-appeal allowing re-export of goods on payment of fine, Valuation of goods for customs clearance, Scope of re-export under Section 80 of the Customs Act, 1962, Discretion of adjudicating authority under Section 125 of the Customs Act, 1962, Confiscation of goods under Sections 111(d) and 111(m) of the Customs Act, 1962, Consistency in party's declarations, Market price determination for redemption fine under Section 125 of the Customs Act, 1962, Exercise of powers under Section 129DD of the Customs Act, 1962.Analysis:The judgment involves a review of an order-in-appeal allowing re-export of goods on payment of a fine. The case originated when a passenger declared goods at a certain value upon arrival, which was later refixed by customs authorities. The Deputy Collector confiscated the goods but allowed redemption on payment of a fine and imposed a personal penalty. The respondent appealed, seeking re-export on reduced fines. The Government clarified that the review's scope was to assess the legality of the order-in-appeal, not to revisit the valuation already accepted.Regarding re-export under Section 80 of the Customs Act, the Government emphasized that true declaration is crucial for re-export without fines or penalties. The Collector (Appeals) erred in permitting re-export with fines and penalties under Section 80. The judgment set aside the Collector (Appeals) order, noting that re-export could be allowed under Section 125 with various options like absolute confiscation, redemption for home consumption, or re-export with or without conditions.The Deputy Collector's decision to not permit re-export was scrutinized. The Government found no inconsistency in the party's declarations and criticized the Deputy Collector's grounds for denying re-export. The judgment highlighted that the redemption fine should align with the market price of goods to ensure the viability of the redemption option.Ultimately, the Government annulled the order-in-appeal, upholding the Deputy Collector's decision with a modification allowing redemption for re-export under Section 125 on payment of a reduced fine. The imposition of a personal penalty was also upheld, with a three-month deadline for availing the re-export option. The exercise of powers under Section 129DD of the Customs Act, 1962, was invoked to pass this order, concluding the legal proceedings in the matter.