KANNAN KARUPPUSAMY Vs. CHIEF COMMISSIONER OF CUSTOMS,

JUDGEMENT

(1.) IT has been stated that the Petitioner is a Non -resident Indian employed in Singapore. He has been issued with the passport, bearing passport No. E0735182. The Petitioner had arrived at the Chennai Airport, from Singapore, on 11.10.2009. The Petitioner was carrying with him gold chains weighing 310 grams, valued at Rs. 3,74,790/ -. The Petitioner, being a Non -resident Indian, was eligible to import gold chains, as part of his baggage, availing the benefits, under the Notification No. 31/2003 -Customs, dated 1.3.2003, which provides for the bringing of gold/gold jewellery, at a concessional rate of duty at Rs. 50/ - per gram, on certain conditions.

(2.) IN the said notification it has been stated that the gold imported should not be over 10 kilograms and that the person bringing the gold should have stayed abroad for a period of not less than six months. Since, the Petitioner had satisfied all the necessary conditions he is eligible to bring gold ornaments, as part of his baggage. However, the customs authorities attached to the Air Intelligence Unit had intercepted the Petitioner and several others, who were bringing gold, as part of the baggage and had seized the gold ornaments from them. According to the Respondent customs department the Petitioner and the others were only carriers of gold ornaments, which were being brought for some unknown operator.

(3.) IT has been further stated that the Petitioner had preferred an appeal before the Commissioner of Customs (Appeals) Chennai, challenging the absolute confiscation of the goods in question and against the imposition of penalty. The appeal was taken up for disposal, along with the appeals filed by the other persons, from whom gold jewellery had been seized. The Commissioner of Customs (Appeals), had issued a show cause notice to the Petitioner and the others, including the said Rahamathullah, as to why the penalty imposed on them should not be enhanced, in terms of the first proviso to Sub -section (3) of Section 128A of the Customs Act, 1962. The other appeals and the show cause notice had been taken up for hearing and a common order, dated 5.2.2010, had been issued setting aside the order of absolute confiscation and had allowed re -export of the gold ornaments, on payment of a redemption fine of Rs. 37,000/ -, besides a penalty of Rs. 20,000/ -. The penalty of Rs. 5000/ -, imposed on the said Rahamathullah, had been enhanced to Rs. 25,000/ -, in each case.