2000 (10) TMI 496 - AT - Customs

Tribunal upholds customs confiscation for diversion of goods, adjusts penalties based on roles. Appeals resolved with fines.

The Tribunal upheld the confiscation of certain goods seized for contravention of customs rules, including diversion of goods meant for diplomats to the ... Confiscation and penalty Issues:Confiscation of seized goods, imposition of penalties on various persons, contravention of customs rules, diversion of goods for sale in the domestic market, clearance of goods for diplomats, validity of statements recorded, applicability of Customs Act provisions.Confiscation of Seized Goods and Imposition of Penalties:The judgment involves appeals arising from the Commissioner of Customs' order confiscating foreign liquor, food stuffs, and cosmetics seized from various locations, with penalties imposed on different individuals. The Adjudicating Authority had confiscated the goods and imposed penalties, leading to the appeals. The appellants contested the confiscation and penalties, presenting defenses related to ownership and lawful acquisition of the seized goods.Contravention of Customs Rules and Diversion of Goods:The judgment addresses the contravention of customs rules, specifically Rule 4 of the Foreign Privileged Persons Rules, 1957, and Rule 3(1)(d) of the Foreign Trade Order, 1993. The appellants were found to have diverted goods meant for diplomats to the domestic market without proper authorization, leading to the confiscation of goods and imposition of penalties. The defense put forth by the appellants regarding the ownership and intended use of the goods was not accepted by the Tribunal.Clearance of Goods for Diplomats and Validity of Statements:The case involved goods cleared purportedly for diplomats but diverted for sale in the local market. Statements recorded under Section 108 of the Customs Act were crucial in establishing the diversion of goods and the involvement of various individuals in the unauthorized sale. The Tribunal analyzed the validity of these statements, rejecting claims of coercion or duress, and relied on them to determine the culpability of the appellants.Applicability of Customs Act Provisions:The judgment delves into the application of various provisions of the Customs Act, 1962, including Sections 111(d), (j), and (o). The Tribunal upheld the confiscation of certain goods based on the contravention of these provisions, highlighting the unauthorized removal of dutiable goods from customs areas and the failure to fulfill conditions for duty exemption. The Tribunal differentiated between goods validly imported for privileged persons and those diverted for unauthorized sale, applying relevant provisions accordingly.Final Decision and Penalties Imposed:The Tribunal upheld the confiscation of certain goods while setting aside the confiscation of others based on the evidence and defenses presented. Penalties imposed on different individuals were also adjusted, considering their roles in the diversion and unauthorized sale of goods. The judgment concluded by disposing of the appeals with specific fines and penalties assigned to each appellant based on their involvement in the customs violations.