2009 (5) TMI 699 - AT - Customs

Summary

Issues involved: Application for waiver of predeposit and stay of recovery of penalty u/s 112 of the Customs Act, classification of imported goods under CSH 2905.59, requirement of specific license for import, confiscation of goods u/s 111(d) of the Act, redemption of confiscated goods on payment of fine and penalty.

Waiver of predeposit and stay of recovery of penalty: M/s. DPB Antibiotics filed an application for waiver of predeposit and stay of recovery of penalty of Rs. 10,000/- imposed on them u/s 112 of the Customs Act. The appeal was taken up without a further hearing, and it was found that the goods imported were classified under CSH 2905.59, which required a specific license for import. The original authority had confiscated the goods under import u/s 111(d) of the Act as the importer did not possess the required license. The impugned order upheld the original authority's decision.

Classification of imported goods and redemption of confiscated goods: The goods imported by M/s. DPB Antibiotics were found to be used as a preservative in consumer products like shampoo and cosmetics. Although the goods were classified under CSH 2905.5900, which required a license for import, it was noted that provisions requiring registration with the Central Insecticide Board and Registration Committee (CIB&RC) do not apply when the insecticides are imported for non-insecticidal purposes. The original authority had confiscated the goods but offered the appellants the option to redeem the goods on payment of a fine of Rs. 50,000/- in addition to penalty. The appellants requested to pay the redemption fine and clear the goods for home consumption on payment of applicable duty and penalty, which was allowed by the Tribunal. The goods would be released upon producing clearance from the Assistant Drugs Controller concerned.