Rajesh Agarwal @ Raju Sagar Vs Commissioner of Customs (CESTAT Delhi)
The appellant challenged the Order-in-Appeal dated 29.12.2020 and the Order-in-Original dated 19.02.2020, which upheld the absolute confiscation of exotic birds and animals and imposed penalty under Section 112(b)(i) of the Customs Act, 1962. The authorities had treated the seized exotic birds and animals as prohibited and smuggled goods.
The appellant stated that he had been keeping exotic birds and animals since 2004-05 and had acquired 192 exotic species over a period of 15 to 16 years from two pet shop owners at Indore through cash purchases. On 04.05.2019, officers of the Directorate of Revenue Intelligence (DRI), along with Forest officials, searched his premises, seized 192 exotic birds and animals under a seizure memo on the belief that they had been smuggled into India, and subsequently handed them over to zoo authorities. Statements of the appellant, the suppliers, and other persons were recorded under Section 108 of the Customs Act. The suppliers confirmed supplying the birds and animals to the appellant and stated that they had sourced them from persons located in India.
Following investigation, a show cause notice dated 01.11.2019 proposed confiscation under Sections 111(b) and 111(d) of the Customs Act and imposition of penalty under Section 112(b)(i). The adjudicating authority ordered absolute confiscation of the birds and animals and imposed a penalty of ₹5 lakh. In appeal, the Commissioner (Appeals) reduced the penalty to ₹3 lakh but upheld the confiscation, observing that the appellant was only a subsequent purchaser while the birds and animals had allegedly been smuggled by other persons.
