Tribunal clarifies customs law on confiscation of goods and Transfer of Residence concessions

The Tribunal dismissed the Miscellaneous application seeking compliance with its order due to a pending reference application. The delay in the reference application was condoned, allowing it to proceed for disposal on merits. Regarding the interpretation of Section 118(1) of the Customs Act, the Tribunal clarified that while goods imported in a package liable for confiscation render the package and other goods liable, the authority has discretion in confiscation. The Tribunal upheld confiscation of undeclared goods but allowed Transfer of Residence concessions for declared old and used articles. The Reference application was dismissed as the Tribunal's discretion was deemed valid.

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Issues:
1. Compliance with the Tribunal's order in a miscellaneous application.
2. Delay in the presentation of a reference application.
3. Interpretation of Section 118(1) of the Customs Act, 1962 and its applicability.

Compliance with Tribunal's Order (Miscellaneous Application):
The Miscellaneous application was filed seeking direction for compliance with the Tribunal's order dated 20-12-1990. The Department did not carry out the order due to a pending reference application. The learned DR stated that after the disposal of the reference application, the Department would comply with the Tribunal's order. Both parties were ready to argue the reference application. The Tribunal dismissed the Miscellaneous application in these circumstances.

Delay in Reference Application:
In another matter, a reference application was filed with a delay of 23 days. The Tribunal, after hearing submissions from both parties, condoned the delay and decided to take up the reference application for disposal on merits.

Interpretation of Section 118(1) of the Customs Act:
The Reference application was against the Tribunal's order regarding the interpretation and applicability of Section 118(1) of the Customs Act, 1962. The Tribunal considered the scope of Section 118, emphasizing that it does not lead to ambiguity. The section states that goods imported in a package liable for confiscation make the package and any other goods in it also liable. However, the discretion to confiscate or release goods lies with the authority based on the circumstances of each case. In this case, the Tribunal upheld the confiscation of undeclared goods but allowed Transfer of Residence concessions for old and used articles declared as per law. The Tribunal highlighted that the exercise of discretion by a quasi-judicial body should not be questioned unless it is arbitrary or perverse. Merely differing views between the Department and the Tribunal do not merit a legal question for reference. Consequently, the Reference application was dismissed based on the Tribunal's findings and interpretation of the law.

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