2004 (4) TMI 236

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....., Member (T)]. - This is a case of missing diamonds. The Revenue is aggrieved by the order of the Commissioner of Customs, Mumbai. 2. The respondents imported a consignment of rough diamonds, filed a Bill of Entry for its clearance. Rough diamonds are exempt from payment of duty under Notification 36/96-Cus. The goods were in the negative list of imports of 1992-97 policy. The importer had a v....

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....r in packing' theory was rejected by the Commissioner who considered it a case of wrong declaration, held the goods liable to confiscation under Section 111(m) of the Customs Act, confiscated them but allowed them to be re-deemed for re-export on payment of a fine of Rs. 1,50,000/-. No penalty is imposed on any one. 4. The Commissioner observed that the diamonds found short were not available f....

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....pened. 5. The Revenue's grouse is that the Commissioner is wrong in not imposing the penalty on the importer and secondly should not have held the shipper responsible of misdeclaration. The Revenue was almost pleading the case of the shipper. It says, we quote "Section 1(2) of the Customs Act defines extent in respect of the applicability of the Customs Act, 1962 which mentions that 'it extends....

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....h the importer and the shipper were asking for re-export of the goods. In regard to the plea that the shipper is a foreigner and so the provisions of the Customs Act do not extend beyond the territorial waters etc., we hold that the shipper was represented before the Commissioner in India and was the one who requested for reshipment. The Customs Act applies to all foreigners who happen to visit In....