P.J. NELAPPANA Vs. COLLECTOR OF CUSTOMS, COCHIN

JUDGEMENT

(1.) THIS appeal is filed by an individual, who had received a gift, of one old and used second hand diesel engine, from his sons settled abroad. The appellant had submitted that prior to the despatch of the gift, he had made an enquiry with the Export and Import Control Authority of India at Cochin, when he learnt that there was no need for an import licence since there was no foreign exchange involvement. A gift from his son for personal use, he is prepared to pay duty on the item. He is contesting the penalty and fine reduced by Collector (Appeals) to Rs. 7,000/ - and Rs. 14,000/ - from Rs. 13,000/ - and Rs. 48,000/ - imposed by the Assistant Collector since they found that under the Import Policy for the period 1990 -97. The Collector (Appeals) had found that the import of gifts was permitted according to the Baggage Rules, 1976 and a custom clearance permit could be issued on application to the import control authorities. Since no such permit was produced on import of second hand goods, the subject goods could not be allowed to be imported. The advise of the licensing authority, if any, has not been substantiated by any documentary evidence by the appellants. In this view the import of the old and used second hand diesel engine was found liable for confiscation under Section 111D of the Customs Act.

(2.) FROM the impugned order, we find that the plea of the use of the goods as a gift from the children of the appellant for personal use, without the involvement of foreign exchange, has been admitted and there is a finding arrived at, that this import is not for commercial purpose and does not involve foreign exchange. However, the Collector reduced the penalty, as recorded herein above, by showing leniency as he found that the original authoritys order for redemption fine of about 400% and a penalty of 100% did not indicate any circumstance to impose such heavy amounts. The Collector, thereafter observed in view of the circumstances mentioned above, I am satisfied that 100% redemption fine and 50% penalty will meet the ends of justice. Accordingly, I reduce the redemption fine to Rs. 14,000/ - and penalty to Rs. 7,000/ -.

(3.) FROM the Assistant Collectors order in the paper book it is observed that the value of the imports were fixed on Rs. 13,694/ - by the Assistant Collector which has not been disturbed by the Collector (Appeals).