S.MANIKUMAR, J.

Civil Miscellaneous Appeal is directed against the Final Order No.455 of 2007, dated 20.04.2007, passed by Customs, Excise and Service Tax Appellate Tribunal (CESTAT), South Zonal Bench, Chennai 600 006. The Tribunal, while setting aside the Order-in-Original No.31 of 2000, dated 31.03.2000, passed by the Commissioner of Customs, Madras-1, directed him, to give option to the 1st respondent, for redemption of gold seized, against payment of fine.

2. Facts leading to the appeal are that on 17.09.1999, the 1st respondent, who arrived by Singapore Airlines Flight SQ 410/17.09.99, at Anna International Airport, Chennai, was intercepted by the Officers of the Directorate of Revenue Intelligence, Chennai. He showed his Customs declaration form, indicating the contents of his baggage, as 4 dozen of Martin Shirts and 12 numbers of small calculators and miscellaneous goods. When questioned, as to whether, he was carrying any gold, his answer was 'No'. However, on examination of his baggage, 111 broken bits of gold biscuits, totally weighing 2548.3 grams, were found and recovered from certain folding scissor boxes and stapler pin boxes. In addition to other miscellaneous items, they were seized. Gold was valued at Rs.10,34,355/- and other goods were valued at Rs.41,117/-. All the above, were in excess of the declared items.

3. The Commissioner of Customs (Air), Chennai, appellant, has further submitted that according to Customs Notification No.171/94 (as amended by Notification No.31/2003-Customs), the passenger eligible for import of gold should have stayed abroad for a period of six months. But in the case on hand, the 1st respondent had stayed abroad only for a week. According to the appellant, the respondent had deliberately attempted to smuggle gold, by concealment and without declaration to customs.

4. Material on record discloses that the 1st respondent was arrested on 18.09.1999 and remanded to judicial custody. A show cause notice was issued to the 1st respondent, calling upon him, to show cause, as to,

“(i) Why 111 broken bits of gold biscuits totally weighting 2548.3 grams valued at Rs.10,34,355/- (M.V.) should not be confiscated under Section 111(d)(i)(l) and (m) of the Customs Act, 1962.

(ii) Why the material objects such as aluminum foil, black gum tape, rose brand folding scissors packets, MAX stapler pin packets, and the suitcase used for concealing above said gold bits, should not be confiscated under Section 119 of the Customs Act, 1962.

(iii) Why the other assorted goods totally valued at Rs.41,117/- (CIF) seized along with the above said 111 gold bits, should not be confiscated under Section 111(d)(i)(l) and (m) of the Customs Act, 1962, and

(iv) Why personal penalty under Section 112(a) of the Custom Act, 1962, should not be imposed on Shri.Paraman Sinnasamy.

5. Though the 1st respondent had acknowledged the show cause notice on 03.01.2000, no reply was received till 02.03.2000, and hence, the adjudicating authority granted, personal hearing on 15.03.2000. After hearing the 1st respondent and considering the material on record, Clause 3 of the Foreign Trade (Exemption from application of rules in certain cases) Order, 1993, issued under Foreign Trade (Development and Regulation) Act, 1992, r/w. Customs Notification No.171/94, dated 30.09.1994 (as amended), provisions of the Customs Act, 1962, the Commissioner of Customs, Madras-1, the adjudicating authority, has passed an Order-in-Original No.31 of 2000, dated 31.03.2000, by which, he had ordered absolute confiscation of 111 gold bits weighing 2548.3 grams, valued at Rs.10,34,355/- (MV), under Section 111(d)(i)(l) and (m) of the Customs Act, 1962, r/w. Section 3(3) of the Foreign Trade (Development and Regulations) Act, 1992.

6. The Commissioner of Customs, Madras-1, has further ordered confiscation of the assorted goods, valued at Rs.41,117/- (