2018 (4) TMI 1116 - AT - Customs

Confiscation - redemption fine - penalty - import of Cold Rolled Non-Grain Oriented Silicon Steel Sheet - whether the appellant have been rightly visited with confiscation of the imported Cold Rolled Non-Grain Oriented Silicon Steel Sheet (CRNO) in coil imported under bill of entry dated 12 August 2015 valued at Rs. 11, 68, 474/- under Section 111(d) have been rightly made alongwith redemption fine allowing of re-export and further penalty of Rs. 75, 000/- under Section 112 (a)(b)(i) of the Act? Held that - there is no test report that the goods did not confirm to the BIS standard. It is a case of venial breach of the Steel and Steel Products (Quality Control) Second (Amendment) Order 2014 dated 31 March 2014 . The goods did not bear the requisite mark or sticker. Further the bona fide of the appellant is evident on the face of the record as they offered to re-export the goods on the clearance being object to for domestic consumption. There is no deliberate breach of the quality control order and for the venial breach the provisions of confiscation and penalty are not attracted - Confiscation and penalty set aside - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Confiscation of imported goods under Section 111(d) of the Act
- Redemption fine, re-export, and penalty under Section 112(a)(b)(i) of the Act

Confiscation of Imported Goods:
The appellant imported "Cold Rolled Non-Grain Oriented Silicon Steel Sheet" in coil and Electro Galvanised Steel Sheet in Coil. During examination, it was found that the Cold Rolled Non-Grain Oriented Silicon Steel Sheet did not bear the mandatory BIS standard markings. The goods were seized for violation of the Quality Control Order. The appellant explained that the supplier missed putting the BIS marking, and they offered to re-export the goods. The appellant provided certificates showing the origin of goods and compliance by the manufacturer with BIS standards. The Additional Commissioner ordered confiscation of the Cold Rolled Non-Grain Oriented Silicon Steel Sheet, but the appellant appealed.

Redemption Fine, Re-Export, and Penalty:
The Additional Commissioner ordered redemption fine and penalty along with allowing re-export of the confiscated goods. The Commissioner (Appeals) upheld this decision. However, the Tribunal found no test report confirming non-compliance with BIS standards. It was considered a venial breach as the goods were not marked with the requisite standard. The appellant's good faith was evident as they offered to re-export the goods. The Tribunal held that there was no deliberate breach justifying confiscation and penalty. The order of confiscation and penalty was set aside, and the appellant was entitled to a refund of duty, redemption fine, and penalty. The authority was directed to refund the amount within 60 days.

This judgment highlights the importance of compliance with quality control orders and the significance of good faith efforts by importers in rectifying breaches. The Tribunal's decision focused on the lack of deliberate violation and the appellant's willingness to rectify the situation through re-export, leading to the refund of deposited amounts.