{"id":198934,"date":"1986-08-06T00:00:00","date_gmt":"1986-08-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/r-subramaniam-vs-collector-of-customs-and-central-on-6-august-1986"},"modified":"2018-05-28T05:38:17","modified_gmt":"2018-05-28T00:08:17","slug":"r-subramaniam-vs-collector-of-customs-and-central-on-6-august-1986","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/r-subramaniam-vs-collector-of-customs-and-central-on-6-august-1986","title":{"rendered":"R. Subramaniam vs Collector Of Customs And Central &#8230; on 6 August, 1986"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Tamil Nadu<\/div>\n<div class=\"doc_title\">R. Subramaniam vs Collector Of Customs And Central &#8230; on 6 August, 1986<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1987 (11) ECR 726 Tri Chennai, 1987 (27) ELT 744 Tri Chennai<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p> S. Kalyanam,  Member (J)<\/p>\n<p>1. This appeal is directed against the order of the Additional Collector of Central Excise and Customs, Trichy dated 7.3.86 imposing a fine of Rs. 5000\/- in lieu of confiscation of 45 recorded video cassette tapes of foreign origin besides a penalty of Rs. 5000\/- under Section 112 of the Customs Act, 1962 (hereinafter referred to as the Act). On 24.10.85 the officers attached to Customs Intelligence Unit, Hqrs. Office, Trichy and Preventive Officers of the Excise Preventive Unit, Coimbatore searched the business premises of the appellant at Coimbatore who is running a Video Lending Library at 7, Avinash Raod, Coimbatore and seized 266 Nos. pre-recorded video cassette tapes made in Japan and 298 Nos. pre-recorded video cassette tapes with the making Japan erased on the ground that the appellant could not satisfactorily account for the licit acquisition and possession of the same. Proceedings instituted against the appellant under the provisions of the Customs Act, 1962. eventually culminated in the present impugned order now appealed against,<\/p>\n<p>2.   Shri    Ramachandran,    the    learned    consultant    for   the   appellant submitted that the seizure of 45  recorded video cassette tapes concerned in  the  present   appeal   were   imported   in  the  year   1983  by   M\/s.   Radha Sons International,  Bombay from  whom the appellant purchased the same under   six   invoices.   It   was   urged   that   the   licit   acquisition   of   the   said 45 tapes by the appellant in the year 1983 is accepted by the adjudicating authority   under   the   impugned   order.   It   was   therefore   contended   that when  the  tapes  in  question  were  imported   in   1983  and  the   notification under Section 11-B of the Act was issued only on 20.7.84 the tapes would not become liable for confiscation particularly when they were pre-recorded at that time and had suffered excise duty as well.\n<\/p>\n<p>3.   Shri  Krishnan,  the  learned  DR  urged  that  the  notification under Section   11-B   under   Chapter     IVA   No.   205\/84  dated   20.7,1984   mentions &#8220;Video Cassette Tape&#8221;    and the notification does not say that pre-recorded video  cassette  tape   is  excluded   from  its  purview  or  its  operation.  The learned   DR   therefore   urged   that   the   video   cassette   tapes   in  question are   covered   by aforesaid notification   and   the   appellant   who  admittedly was   in  possession   of   the   same  oh  the  date  of   notification  should  have within 7 days from that date delivered to the proper officer a statement containing particulars of the same and admittedly the appellant not having filed   any   such   statement   in   respect   of   the   video  cassette  tapes  under confiscation, the goods would become liable for confiscation under Section 111(p)   of   the   Act   entailing   a   consequential   penalty   under  Section   112 of the Act. The fact that the goods under seizure and confiscation namely video   cassette   tapes   were   lawfully   acquired   by   the   appellant   through bonafide  purchase  in the  year  1983  from   M\/s.  Radha Sons International, Bombay   is   not   disputed   by   the  department   and   is   indeed  admitted  by the  adjudicating   authority   himself   under  the   impugned  order  in para   7 and   likewise   the   fact   that   the   notification  No.   205\/84  dated  20.7.1984 issued under Section  11-B &#8211; Chapter   IVA   of the Act covering the Video Cassette  Tape  came  into existence  on  27.9.1984  does  not admit of any controversy either.  Therefore the only question that arises for my consideration in the present case is whether the expression of the word &#8220;Video Cassette   Tape&#8221;   figuring   in   the   aforesaid   notification   would   refer   only to blank  video cassette tape or would cover pre-recorded  video cassette as well.  In  my opinion there  is  no warrant  to restrict  the scope of the expression   video   cassette   tape   to  blank   video  cassette  tape   alone  and the very spirit of the notification is merely to regulate, control and check the video cassette tapes in the possession of the persons dealing in that. Such a control would not be possible if one were to construe the expression video  cassette   tape   in the  aforesaid   notification as  one  excluding  from its operation pre-recorded video cassette tape. The plea of the consultant that   the   video   cassette   tapes   under  confiscation   have   suffered   excise duty   is  not   relevant   in appreciating the  question  with   reference  to the applicability of the notification under Section 11-B in regard to the goods in  question.   Whether   video  cassette tapes have  suffered  excise duty  or have   not  suffered  excise  duty  will  not  make any difference at all with reference   to   the   applicability   of   the   aforesaid   notification   in   respect of   the   same.   I,   therefore,   find   that   notwithstanding  the   fact   that   the goods in question have been lawfully acquired by the appellant as is found by the adjudicating authority under the impugned order, inasmuch as admittedly the appellant has not in terms of Section 11-C of the Act within 7 days from the date of the said notification delivered to the proper officer a statement in the prescribed manner containing the prescribed particulars in relation to the video cassette tapes which are notified goods owned and possessed by him, there is a contravention of Section 11-C of the Act which would entail the confiscation of the goods under Section 111(p) of the Act. I, therefore, uphold the finding of the adjudicating authority in respect of the confiscability of the video cassette tapes but, however, taking into consideration the admitted fact that the goods were lawfully acquired by the appellant under a valid purchase coupled with the fact that the appellant was misled to believe that the statutory obligation to give a statement containing the relevant particulars in terms of 11-C in respect of the notified goods would arise only in respect of blank video cassette tapes, I am inclined to hold that the contravention in the peculiar facts and circumstances of this case is technical in nature and venial in character meriting a sympathetic consideration. In this view of the matter I reduce the fine from Rs. 5000\/- to Rs. 2500\/- (Two thousand five hundred only). So far as the penalty is concerned in the peculiar facts and circumstances of this case, I am of the opinion that interests of justice would be met if the appellant is given a stern admonitioin. Accordingly I set aside the penalty by admonishing the appellant and let him off with an admonition.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Tamil Nadu R. Subramaniam vs Collector Of Customs And Central &#8230; on 6 August, 1986 Equivalent citations: 1987 (11) ECR 726 Tri Chennai, 1987 (27) ELT 744 Tri Chennai ORDER S. Kalyanam, Member (J) 1. This appeal is directed against the order of the Additional Collector of Central Excise [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-198934","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>R. 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