Home Case Index All Cases Customs Customs + AT Customs - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 82 - AT - CustomsClassification of imported goods - Low Aromatic White Spirit (ANYSOL-5) - ITC restrictions - goods confiscated by Revenue by changing the classification of the goods - whether classifiable under heading 2710 19 90 or under heading 2710 12 90? - Held that:- The goods falling under Chapter Heading 2710 12 90 are restricted as per Import Policy and allowed to be imported through State Trading Enterprises (STE) only, as per policy condition-5 of the Chapter 27 of ITC (HS) Schedule-1 - Thus, if the imports are in violation of aforesaid condition, then the same would be liable to action under the Customs Act - The said restriction is specifically applicable to CTH 2710 12 90, claimed by Revenue and not to 2710 19 90, claimed by the appellant. Consequently, depending on the correct classification of the product, the ITC restriction would apply to the imports. Thus, the product imported by the appellant answers to specifications prescribed under sub heading note 4 and therefore, would fall under the description ‘light oils and preparations’ of sub heading 2710.12. Imposition of redemption fine - penalty - Held that:- The section is triggered when the prohibited or restricted goods are imported without due authorization. The bonafide or malafide intention of the importer is of no relevance so far as confiscation under section 111(d) of the Customs Act is concerned - Section 111 (m) relates to the description made by the importer at the time of import and, therefore, the bonafide or malafide of importer is of relevance. In case Section 111(d), the belief of importer is not relevant - as regards penalty, It is apparent that if the goods are held as liable to confiscation for whatever reason penalty under section 112 (a) can be imposed. Malafide/bonafide or the belief of the importer in all is of no relevance. There is no element of differential duty involved in this case - Keeping in view that the only element of violation involved was with reference to policy and that there was no element of duty involved the quantum of penalty and redemption fines are excessive - the penalty and redemption fines are reduced to ₹ 20 lakhs each. Appeal allowed in part.
|