TMI Blog2007 (5) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... ng scrap from the M/s. Excellent Enterprises Pvt. Ltd., Khanna, Punjab. The purchase was on High Sea sale basis. M/s. Excellent Enterprises (second appellant) had purchased the consignment from M/s. Sun Metals Casting, LLC, Ajman, Dubai. The consignment had been loaded from Bandar Abbas, UAE on 29-7-04 in terms of the bill of Lading. The sale contract dated 28-8-04 of M/s. Sun Metals Casting, LLC, Ajman, UAE had the following certification "(This consignment does not contain any type of arms, ammunition, mines, shells, cartridges, radio active contaminated or any other explosive material in any form either used or otherwise)." 3. The consignments arrived ICD, Tughlakabad via Navseva port in November 2004. The first appellant filed two b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 112(d) of the Customs Act, confiscation of the Heavy Melting Scrap under 119 as materials used for concealing the offending goods and proposed penalty on the two appellants under Section 112 of the Customs Act. It may be noted that neither the notice nor the impugned order specifies the sub-section under which penalties are to be imposed. In adjudication, the charges made in the notice were upheld, goods confiscated and penalties imposed. 6. The present appeals challenge the confiscation of the Heavy Melting Scrap and imposition of penalties on the appellant. The appellant has no objection to the confiscation of the 538 pieces of explosives/fused/discharged missiles. 7. The contention of the importer is that the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Counsel is that, in importing the consignments due care had been taken and by offering them for 100% examination by Customs and bomb squad officers, the appellants have fully conformed with law and procedure and no action was warranted in regard to the Heavy Melting Scrap or the appellant. 10. It is also being pointed out that similar issues had come up before this Tribunal in the case of Tower Steels (I) Ltd. v. CC, Madurai as reported in 2004 (178) E.L.T. 1004 (Tri.-Cherinai), ITC Global Holding v. CC, Mumbai as reported in 2002 (149) E.L.T. 1144 (Tri.-Mumbai) and Bhrigu Alloys Steels Pvt. Ltd. v. CC, New Delhi as reported in 2006 (203) E.L.T. 57 (Tri.-Del.) and the Tribunal set aside the confiscation of the non-offe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of penalty under Section 112 of the Customs Act. 12. The contention of the learned SDR is that there could be no doubting that the 538 pieces are offending and for that reason they have rightly been confiscated under Section 111(d) of the Customs Act. He would point out that Section 112(a) of the Customs Act makes it clear that any person who rendered imported goods liable to confiscation, rendered himself liable to penalty also. The contention of learned SDR is that the penalty on the importer appellant is justified under Section 112(a) as it had rendered the goods liable to confiscation. 13. The facts as noted above clearly bring home that the first appellant was only importing raw materials for running its factory in the normal co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the import of explosive materials, the appellant was to gain in any manner. Therefore, imposition of penalty on him also is not justified. 15. It is also to be noted that in the absence of specific charges against the appellants in terms of specific sub-sections of Section 112, and also by imposing penalties under the relevant sub-section, authorities have rendered it difficult to understand the charge against each of the appellants. The Hon'ble Supreme Court has strongly dis-approved of such generalized proceedings in the aforesaid judgment in the case of Amrit Foods. 16. In view of what is stated above, the appeals are allowed by setting aside the confiscation of the Heavy Melting Scrap and by setting aside the penal ties imposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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