COMMISSIONER OF CUSTOMS Vs. PEEMA RAM AND ORS.

JUDGEMENT

(1.) IN these 20 appeals, arising out of common Order -in -Appeal and filed by the Revenue, the issue involved is whether the duty of Customs is leviable on the goods received as gift by post from abroad and redeemed on payment of a fine.

(2.) When the matters were called only one Respondent, Shri Ram Lal Bairwa, was present. Another respondent, Shri Ramesh Chand, has requested under his letter dated 2.4.93 to reject the appeal filed by the Revenue, We, therefore, heard Shri V. Valte, learned SDR, and perused the records.

(3.) LEARNED SDR submitted that the parcels were received in the Foreign Post Office in the name of respondents and as the parcels did not contain the required import documents show cause notices were issued to all the respondents; that the Asst. Commissioner while adjudicating the matters observed that the goods were for personal use 'Gift' which did not meet the requirement of Para 3(1)(i) of the Foreign Trade (Exemption from Application of Rules in certain case) Order, 1993 as the assessed value of the goods was more than Rs. 2000 and confiscated the goods under Section 111(d) of the Customs Act; that the Asst. Commissioner, however, gave the option to each respondent to redeem the goods on payment of redemption fine of Rs. 500 and penalty of Rs. 1000; that as no Customs duty was demanded by the Asst. Commissioner all the adjudication orders were reviewed and applications were filed before the Commissioner (Appeals); that the Commissioner (Appeals) also under the impugned Order has held that no duty of Customs is leviable on bona fide gifts imported by post and value of which does not exceed Rs. 5000. The learned SDR, further, submitted that exemption from payment of Customs duty under Notification No. 171 /93 -Cus dated 16.9.93 is available only to the bona fide gifts to the extent they are exempted from any prohibition; that as per Para 3(1)(i) of Foreign Trade Order, 1993 no licence is required for import of personal use upto the value of Rs. 2000, and therefore, gifts in excess of Rs. 2000 imported as post parcel are not fulfilling the requirement of Section 3(3) of Foreign Trade (Development and Regulation) Act, 1992 read with Section 111 of the Customs Act. He finally mentioned that as the gifts imported in the present matter is in excess of Rs. 2000, the exemption from duty is not admissible; that once the condition of the Notification No. 171/93 is not complied with the duty of Customs is payable.