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2017 (6) TMI 840 - AT - CustomsImport of restricted item - second hand tyres - requirement of valid licence issued by DGFT for import - confiscation - redemption fine - penalty - Held that: - It is not in dispute that all second hand goods except second hand capital goods are restricted for imports in terms of para 2.17 of the Foreign Trade Policy, 2009-2014 - the Government of India vide Notification dt. 07.04.2006 had included used tyres as a restricted item - This being so, the appellant would require a specific licence for the import of such used tyres which has not been produced. The authorities have held that the goods have been imported in violation of condition that tyres must have a BIS certification except for tyres imported by Original Equipment Manufacturer (OEM) - We, however, find that this requirement is restricted only to newly manufactured tyres and are not applicable to used tyres. Hazardous waste nature of the imported goods - Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008 - Held that: - there is no doubt that waste pneumatic tyres has been listed as a hazardous waste which can be imported only with the permission of MOEF. At the same time, the said entry excludes such waste pneumatic tyres which do not lead to resource recovery, recycling, reclamation or direct reuse - impugned goods will surely have to be considered as those capable of direct reuse, hence excluded from the purview of Entry B 3140 and consequently, falling in the category, which do not require permission of MOEF for importation - the imported tyres are used tyres, capable of direct reuse, accordingly they will fall in the categories excluded one 3140, they cannot be then treated as hazardous waste and hence their import will not require MOEF permission. Confiscability and imposition of penalty - Held that: - The goods being restricted and there being no specific licence for the import, the goods were rightly confiscated and penalty imposed in the impugned order - However, as we have found that imported goods cannot be treated as "hazardous waste", redemption fine under Section 125 of the Act but only for the purpose of re-export will not sustain. They can very well be permitted clearance for home consumption on imposition of redemption fine under Section 125 ibid. Also, considering that the goods were imported in April 2011 and have been lying in the customs custody ever since with demurrage and other charges mounting up, not to mention the deterioration in quality of the goods, toned down suitably. We therefore order that redemption fine under Section 125 ibid will be limited to 15% (fifteen percent) of the penalty under Section 112 ibid to 10% (ten percent) of the redetermined value. Appeal allowed - decided partly in favor of appellant.
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