TaxTMI 
TaxTMI 
2017 (7) TMI 45
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.... tape and marked as "SUISSE, 10-TOLAS, FINE 6010,999.9" were recovered from him, which he had secreted in his underwear. As per the assaying report prepared by approved valuer, recovered two Gold bar/biscuits weighing 233.280 gms. in total were made up of Gold and were valued at Rs. 7,23,168/-. On the belief that the respondent was illegally importing/ smuggling Gold in contravention of the Customs Act/Baggage Rules/FTP, the Department officers seized the two Gold bars/biscuits along with the packing material, namely Carbon paper and Cello tape used for wrapping and concealing vide Seizure Memo dated 16 February, 2014 and Panchnama was also drawn. Further in the statement recorded of the respondent on the same day under Section 108, he inter-alia stated that the recovered two Gold bars/biscuits were illegally imported from Riyadh (Saudi Arabia). He further stated that his friend, namely, Shri Faiyan lives with him at Riyadh and one of his close friend met him at Riyadh Airport and handed over the said two Gold bars to him for delivering the same to a person who would contact him at the Lucknow Airport. He also told that his ticket from Muscat to Lucknow was arranged for such illega....
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....uty leviable on the Gold imported with the baggage of the person. It was also urged that the respondent on the day of arrival was required to sign on the purported statement under Section 108, of which he had no opportunity to know the contents thereof. Accordingly, the said statement had no evidentiary value. 5. The Joint Commissioner passed the Order-in-Original dated 5^th March, 2015 holding that the two Gold biscuits are liable to confiscation weighing 233.280 gms valued at Rs. 7,23,168/- (Tariff value Rs. 6,18,237/-) under Section 111(d), (l) and (m) of the Act, seized vide Panchnama dated 16 February, 2014. However, he was pleased to give an option to the respondent for redemption of the two Gold biscuits in lieu of confiscation on payment of fine of Rs. 1,40,000/- under Section 125(1) of the act along with payment of duty as applicable and other charges, if any. Further confiscation of the packing material was also ordered and further penalty was imposed under Section 112 Rs. 70,000/- and also 114 AA of Rs. 10,000/-. 6. Being aggrieved, both the parties appeal before learned Commissioner (Appeals), Lucknow. The respondent importer had urged that he was a genuine passen....
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....further observed that the respondent have claimed that the Gold was kept in his pant pocket wrapped in carbon paper. Further, it is observed as a matter of common understanding, the carbon paper and cello tape is not required if the goods are to be simply kept in the pant pocket. Such things are needed if the goods are to be glued/attached with the surface of cloth. Thus. the version of packing up the Gold for keeping in pant pocket was believed. Further observed that the respondent have not given convincing reason as to why the Gold in question, was not declared in the Customs declaration as required. So far the plea that the respondent was intercepted in the disembarkation hall before he could reach the Customs Post, the said plea was rejected observing that disembarkation card is provided to a passenger during the flight with the purpose, the same would be filled by him prior to reaching the Customs checkpoint, so that the Customs Authority may inspect the declared goods, if found needed. Thus, as no dutiable goods were filled in the card for declaration, it appeared to learned Commissioner that the respondent was taking chance of crossing the Customs checkpoint without paying d....
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....ught to be evaded or Rs. 5,000/-, whichever is greater. 9. Being aggrieved the Revenue is in appeal before this Tribunal on the ground that the smuggled Gold is liable to absolute confiscation, as the import under the Baggage Rules is for an eligible passengers who is coming to India after a period of not less than six months of stay abroad and short visits if any, made by the eligible passenger, during the aforesaid period of six months, shall be ignored, if the total duration of stay on such visits does not exceed 30 days and such passenger has not availed of the exemption under this Notification or under the Notification being superseded at any time of such short visits. It is further urged that for any passenger who brings Gold to India, must satisfy two essential conditions namely - (I) The passenger should be a regular passenger and the Gold should be part of it bona fide household goods or personal effects. In the circumstance of this case, it is evident that the 'carrier of gold', being a smuggler, cannot be equated with an 'eligible passenger' and should not be given rights to import gold as his bona fide baggage of the personal effects. Further to CBEC Circ....