TaxTMI 
TaxTMI 
TaxTMI 
2015 (3) TMI 818
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....When the petitioners produced the said two television sets to the customs authorities for clearance, the customs authorities did not find anything wrong in the said two television sets for clearance under the Customs Act, 1962 and the Baggage Rules, 1993 (hereinafter referred to as "the said Baggage Rules"). The petitioners claimed exemption of the entire amount of customs duty in respect of the said two television sets, on the ground that all the nine members of the joint family were travelling together, and the said televisions sets were to be used by members of their joint family. However, the respondent nos. 2 and 3, the officials of the customs authorities at the said airport did not accept such contention of the petitioners and directed each of the petitioners to pay customs duty of Rs . 19,992/- (amounting to a total sum of Rs . 39,984/-) on account of each the said. Each of the petitioners paid the customs duty of the said amount of Rs . 19,992/-. The two receipts dated October 18, 2005 evidencing payment of the said sum of Rs . 19,992/- paid by each of the petitioners on account of the Customs duty imposed by the respondent nos. 1 and 2 are disclosed in the writ petition. ....
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....the same house and form part of the same domestic establishment. Mr. Dutt strenuously urged that in the instant case, since the said two television sets were brought by the petitioners while accompanied by other six members of the joint family, the petitioners were entitled to the benefit of exemption for Rs . 2 lakhs, that is, by clubbing exemption limit Rs . 25,000/- for each member of the said family and no duty could be levied any of the petitioners on account of the said two television sets valued at Rs . 81,000/- each. He further submitted that if the definition of the expression "family" in Rule 2(iv) of the said Baggage Rules creates any ambiguity, the petitioner should get the benefit of the interpretation of Section 79(1)(b) of the Customs Act for obtaining the exemption of customs duty, by way of free allowance, for the entire value of the said television sets as claimed in this petition. In support of his contention Mr. Dutt relied on the decision of the Supreme Court in the case of C. Krishna Prasad vs. Commissioner of Income Tax, Bangalore reported in 97 ITR 493 , where it was held that plurality of persons is an essential attribute of a family and a single indi....
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....as been in his use for such minimum period as may be specified in the rules; (b) any article in the baggage of a passenger in respect of which the said officer is satisfied that it is for the use of the passenger or his family or is a bona fide gift or souvenir; provided that the value of each such article and the total value of all such articles does not exceed such limits as may be specified in the rules. (2) the Central Government may make rules for the purpose of carrying out the provisions of this section and, in particular, such rules may specify- (a) the minimum period for which any article has been used by a passenger or a member of the crew for the purpose of clause (a) of sub-section (1); (b) the maximum value of any individual article and the maximum total value of all the articles which may be passed free of duty under clause (b) of subsection (1); (c) the conditions (to be fulfilled before or after clearance) subject to which any baggage may be passed free of duty. (3) Different rules may be made under sub-section (2) for different classes of persons. BAGGAGE RULES, 1998 Rule 1. Short title and commencement- ( i ) These rules may be called the Baggage Rules, 1....
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....ection 79. In exercise of such power, the Central Government has framed the said Baggage Rules. Rule 3 of the said Baggage Rules provides, inter alia, that an Indian resident, returning from any country other than Nepal, Bhutan, Myanmar and China shall be allowed clearance free of duty articles in his bona fide baggage to the extent mentioned in column (2) of Appendix "A". In this case, the petitioners claimed exemption of customs duty in respect of the said television sets under Clause (a) under Column .- 1 read with Clause (ii) under column (2) of the said Appendix A, which provide that "All passengers" of and above 10 years of age and returning after stay abroad of more than three days would be allowed exemption from customs duty for certain articles upto a value of Rs . 25,000/-, if the same are carried on the person or in the accompanied baggage of the passenger. The opening words used in the in different clauses under Column - 1 of the said Appendix A are "All passengers ........" However, the enabling provisions contained in Section 79 of the Customs Act provide for the power of the proper officer to pass an article (s) free of duty, that is to grant exemption from customs....