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Home Case Index All Cases Customs Customs + AT Customs - 2008 (12) TMI AT This

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2008 (12) TMI 201 - AT - Customs


Issues:
Import of war material, validity of pre-shipment inspection certificate, confiscation of goods, penalties under Customs Act.

Analysis:

Issue 1: Import of War Material
The appellants imported a consignment of heavy melting scrap, where some containers were found to contain war material, a restricted/prohibited item as per Foreign Trade Policy. The Commissioner initiated proceedings for confiscation of the war material and other scraps used to conceal it. The Commissioner allowed redemption of remaining scrap on payment of a fine and imposed penalties under Section 112(a) (b) of the Customs Act, 1962.

Issue 2: Validity of Pre-Shipment Inspection Certificate
The Ministry's circular required a valid pre-shipment inspection certificate by the appropriate authority. The appellant produced a certificate from Moody International, Iran, which was not a specified agency in the Handbook of Procedures. The DGFT clarified the registration requirements for branch offices after the consignment arrived. The Tribunal found no fault on the appellant's part for producing the certificate issued by the Iran branch office, as the registration requirement was clarified after the import.

Issue 3: Confiscation of Goods and Penalties
The Tribunal upheld the confiscation of war material and the remaining scrap in the same container, with an option for redemption. Citing a precedent, the Tribunal set aside penalties imposed on the appellants. The Tribunal differentiated between the confiscation of war material and other goods, setting aside penalties and confiscation for containers without war material.

Conclusion
The Tribunal upheld the confiscation of war material and scrap in the same container, allowing redemption. It set aside penalties and confiscation for containers without war material. The judgment clarified the validity of the pre-shipment inspection certificate and highlighted the importance of compliance with specified agencies for import procedures.

 

 

 

 

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