Ravinder Kumar Rishabchand Vs Principal Commissioner of Customs (Madras High Court)
Madras High Court held that petitioners are not entitled for payment of fine in lieu of confiscation since gold imported beyond the permissible limit of 1 Kg is to be treated as prohibited items as per the provisions of section 2(33) of the Customs Act.
Facts- The petitioner has filed this writ petition challenging the impugned orders passed by the respective authorities on the ground that the petitioners ought to have been given an option to pay fine as per the provisions of Section 125 of the Customs Act, 1962. It is contested that since gold is not a prohibited item falling under Section 2(33) of the Act, the option to pay fine as per the provisions of Section 125 of the Act ought to have been given to the petitioners.
Conclusion- As seen from the Notification dated 06.03.2014 issued by the Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India, it is clear that the gold in excess of 1kg cannot be imported.
In the case on hand, the authorities below have concurrently held that the petitioners are not entitled for payment of fine in lieu of confiscation. Therefore, in view of the settled legal position that when the gold imported is beyond the legally permissible limit, i.e., weighing more than 1kg, the said gold has to be treated as a prohibited item as per the provisions of Section 2(33) of the Act. The contention of the petitioner that irrespective of the quantity of the gold the option to pay fine in lieu of confiscation ought to have been given will encourage smuggling, which would never have been the intention of the legislature as the intention of the legislature to enact a legislation like Customs Act is only to prevent smuggling and ensure fair trading.
