Confiscated gold jewellery: re-export allowed on fine, and personal penalty set aside where no deliberate smuggling was shown.

Gold bullion imported under licence was distinguishable from gold jewellery treated as prohibited consumer goods, and the record did not establish a deliberate attempt to smuggle the jewellery or evade import policy. In that setting, re-export of the confiscated jewellery was permitted on payment of fine, even though confiscation itself was maintained. The absence of evidence of deliberate evasion also meant that the personal penalty on the importer was not sustainable and was set aside.

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Issues: (i) Whether the confiscated gold jewellery was liable to be re-exported on the plea of wrong supply. (ii) Whether the penalty imposed on the importer could be sustained.

Issue (i): Whether the confiscated gold jewellery was liable to be re-exported on the plea of wrong supply.

Analysis: The imported consignment contained gold bullion, which was permitted to be cleared against the import licence, and gold jewellery, which was treated as prohibited consumer goods. The material did not establish a deliberate attempt to smuggle the jewellery or to secure its clearance in contravention of the import policy. The authorities below also did not record any substantial finding that the import was a calculated attempt to evade duty. In these circumstances, the plea for re-export was accepted, though the case was not treated as fully established on the footing of wrong supply.

Conclusion: Re-export of the confiscated jewellery was permitted on payment of fine.

Issue (ii): Whether the penalty imposed on the importer could be sustained.

Analysis: Since the record did not show a deliberate attempt to smuggle the goods or evade the policy restrictions, the basis for personal penalty was not made out.

Conclusion: The penalty was set aside.

Final Conclusion: The confiscation of the jewellery was maintained, but the importer was given relief by way of re-export on payment of fine and by deletion of the personal penalty.

Ratio Decidendi: Where confiscation is upheld but the record does not show a deliberate attempt to smuggle or evade import restrictions, re-export may be allowed on payment of fine and the personal penalty may not survive.

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