2009 (7) TMI 1037 - AT - Customs

Summary

Issues:
1. Imposition of redemption fine and penalty on the appellant.
2. Classification of the imported goods, Thiourea 99%, under CTH 3808.
3. Requirement of registration and import permit for the imported goods under the Insecticides Act.

Analysis:
1. The appellant filed a stay application against the order confirming a redemption fine of Rs. 6 lakhs and a penalty of Rs. 5 lakhs imposed on them. The goods in question, Thiourea 99%, were classified under CTH 3808. The appellant imported four consignments of Thiourea 99% and later discovered that registration with the Central Insecticides Board and an import permit were required due to the goods being listed in Schedule 7 of the Insecticides Act. The appellant was issued a show cause notice for non-compliance with the registration and import permit requirements, leading to the imposition of the redemption fine and penalty, which were confirmed in the Order-in-Appeal.

2. The appellant presented evidence showing that they had requested a No Objection Certificate (NOC) from the Ministry of Agriculture for the import, stock, purchase, and sale of Thiourea 99% for industrial and non-agricultural use. Additionally, a communication from the Central Insecticides Board & Registration Committee stated that the NOC was not necessary. The appellant relied on a previous case law where it was held that Thiourea 99% falls under Customs Tariff Heading 2903 90 10. As per the Tribunal's prima facie assessment, the appellant seemed to have a strong case in their favor regarding the classification of the goods.

3. After a thorough review of the records, the Tribunal found that the appellant had established a strong case in their favor. Consequently, a complete waiver of the pre-deposit of the redemption fine and penalty was granted until the final disposal of the appeal. The Tribunal's decision was influenced by the evidence presented by the appellant regarding the NOC request and the communication from the Registration Committee, along with the precedent set by the previous case law regarding the classification of Thiourea 99%. The Tribunal's decision to grant the waiver indicated a favorable outlook on the appellant's position in the ongoing legal proceedings.