2007 (4) TMI 592 - AT - Customs

Summary

Issues:
Import of war material/explosive material mixed with brass scrap, confiscation of materials, imposition of penalty, applicability of norms, justification of penalties and fines.

Analysis:
The case involved an appeal against the order of the Commissioner (Appeals) regarding the import of a consignment of brass scrap honey mixed with war material/explosive material. The original authority had ordered the absolute confiscation of the explosive material and the entire consignment of brass scrap, along with imposing penalties and fines on the importer.

The appellant argued that they had taken reasonable precautions in importing the consignment and highlighted the difference in norms between foreign suppliers and Indian customs authorities. The appellant also relied on a judgment from CESTAT Mumbai in a similar case.

The judge acknowledged the seriousness of importing war material/explosive material due to security implications but noted the lack of sufficient precautions taken by the importer, such as obtaining a pre-inspection certificate. The judge observed discrepancies in the categorization of explosive material between the exporter and the customs authority.

After careful consideration, the judge concluded that no malafide intent could be attributed to the appellant, leading to the setting aside of the penalty imposed. However, the order of absolute confiscation of the explosive material was upheld. The judge justified the confiscation of the entire consignment but decided to reduce the redemption fine imposed.

Ultimately, the appeal was partly allowed by setting aside the penalty and reducing the redemption fine to Rs. 40,000. The judgment disposed of the appeal based on the terms outlined in the analysis.