1989 (5) TMI 239 - AT - Customs

Tribunal grants redemption of TV & VCR, reverses penalties due to lack of mens rea.

The Tribunal reversed the confiscation of the TV, allowed redemption of the VCR upon payment of a redemption fine, and set aside the penalty imposed on ... Baggage - TV set imported as baggage and covered by genuine baggage receipt Issues:1. Legal importation of seized items.2. Confiscation of items and imposition of penalty.3. Validity of seizure and redemption of items.Detailed Analysis:1. The appellant appealed against the order of the Collector of Customs regarding the seizure of a Video Cassette Recorder (VCR) and a Sony Colour TV. The Customs authorities seized the items under a panchnama, suspecting illegal importation. The appellant produced baggage receipts, but discrepancies were found regarding the authenticity of the receipts for the VCR. A Show Cause Notice was issued, alleging violations of import regulations, leading to confiscation and penalty imposition.2. Adjudication proceedings resulted in the confiscation of both items and a penalty of Rs. 250 against the appellant. The appeal to the Collector was dismissed, prompting the appellant to file an appeal before the Tribunal. The key issues were whether the confiscation and penalty were justified.3. The Tribunal analyzed the legal importation of the items. The Collector confirmed the legal importation of the TV but concluded that the sale contravened regulations. However, the appellant argued that the TV was mortgaged, not sold, citing legal precedents. The Tribunal agreed that the transaction by mortgage was not prohibited, leading to setting aside the confiscation of the TV.4. Regarding the VCR, discrepancies in the baggage receipt authenticity were noted. The appellant claimed lack of mens rea and bona fide purchase. The Tribunal considered the appellant's plea, finding no evidence of regular dealing in such goods or requisite mens rea. As a result, the appellant was allowed to redeem the VCR by paying a redemption fine, and the penalty was set aside due to the absence of requisite mens rea.5. Legal precedents were cited to support the Tribunal's decisions. The Tribunal ordered the return of the TV to the appellant and allowed redemption of the VCR upon payment of a redemption fine. The penalty imposed was set aside due to the appellant's circumstances. The final order reversed the confiscation of the TV, allowed redemption of the VCR, and set aside the penalty.