Ignorance of Indian Baggage Rules by Non-Resident Indians of UK: CESTAT Reduces Penalty Imposed [Read Order]

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), reduced the amount of penalty imposed on the ground that the ignorance of Indian Baggage Rules was made by a non-resident Indian of the UK.

The appellant, Deepali Suresh Padhiar, is a non-resident Indian with having British passport who visited India on 12.05.2013. At the airport, the appellant opted for Green Channel for clearance but at the direction/instruction of the customs officer, the appellant was diverted to Red Channel. At the time of filing the declaration form, the declaration of 3 gold coins was not mentioned.

Therefore, the said gold coins were seized and the Assistant Commissioner SVP International Airport, Ahmedabad ordered for confiscation of gold coins valued at Rs. 243215/- Allowing the appellant an option to pay a fine of Rs. 60,804/- for the redemption of the said gold coins and also imposed a penalty of Rs. 24,321/-.

Mrugesh P Pandya, Counsel appearing on behalf of the appellant submitted that the appellant did not have any idea about the Indian Baggage Rules as well as the taxability of dutiable goods under personal luggage, therefore, this lapse has occurred. He further submits that the appellant has made a statement since these gold coins were gifted to the appellant by her father under Hindu customs therefore, she was under the impression that the same need not to be declared.

A Single Member Bench of the Tribunal comprising Mr Ramesh Nair, a Judicial Member observed that “I find from the facts that, it does not appear that the appellant has any intention to smuggle the gold. This has already been recorded by the Commissioner (Appeals) in his order while reducing the penalty and redemption fine. The appellant being a non-resident Indian of the UK having a UK passport was unaware about the Baggage Rules of Indian Customs as stated in their affidavit.”

“I find that the Commissioner (Appeals) though has considered the reduction of penalty and fine but in my considered view the appellant deserves further leniency in the matter. Accordingly, considering the overall facts and circumstances of the case, I reduce the fine from 50,000 to Rs. 20,000/- and penalty from 20,000 to Rs. 10,000” the Tribunal concluded.

To Read the full text of the Order CLICK HERE

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