TMI Blog2024 (1) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... the invoice no. CREPP 220106 dated 06.01.2022 , classifying the goods under CTI 8532 2990 etc. - It cannot be appreciated on how and on what basis, the learned Commissioner (Appeals) had come to the conclusion that there was mis-declaration in respect of the description of the goods. In fact such an assertion in the impugned order is contrary to the facts of the case on record. The imported CRE film capacitors are meant for use as components in the power supply equipment manufactured by M/s Fuji Electric Consul Neowatt Pvt. Ltd. Thus, in terms of paragraph 1.2 (k) of the IS 13340 : 1993, the imported goods are excluded from the scope of coverage as well as compliance with the requirements of IS 13340, as the same are specifically kept out of the items for which of such standards would apply. The appellants have duly filed the B/E in respect of the imported goods and paid the applicable customs duties. It is not the case of the Department, that there was any issue of misdeclaration other than those with respect to the compliance of IS 13340 : 1993. Inasmuch as, the imported goods are specifically excluded from the scope of IS 13340 : 1993, it is found that the requirements u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the imported item of electrical capacitor. On this question, the appellants had replied that the imported goods are dry type capacitor and the requirement of BIS standard IS 13340 apply only to power factor correction and power factor capacitor which are normally oil filled and these capacitor are of different type than the one presently under import by them. The department disputed the claim of the appellants and the goods were physically examined and based on the examination report and other details submitted by Docks Customs Superintendent, the original authority i.e., Deputy Commissioner of Customs, Appraising Group V-A, JNCH, Nhava Sheva-V had absolutely confiscated the impugned goods for having violated the provisions of Section 111(d) of the Customs Act, 1962 and imposed penalty under Section 112(a)(i) ibid. The appellants had filed an appeal against the aforesaid order before the appellate authority. The learned Commissioner of Customs (Appeals) while deciding the case, had confirmed the order of the original authority both on account of confiscation of the impugned goods and for imposition of penalty. Being aggrieved with the impugned order, the appellants have prefe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the original order for confiscation of imported goods and for imposition of penalty. 5. Heard both sides and perused the case records. 6.1. The issue involved herein is to decide whether the appellants in import of the impugned goods viz., CRE Film Capacitor AKMJ-MC 200UF and 400UF , have violated the legal requirements of Electrical Capacitor (Quality Control) Order, 2017 inasmuch as the impugned goods does not carry BIS standard compliance certification and whether the impugned goods are liable for confiscation under Section 111(d) ibid. 6.2 We find that the legal requirements which have been not complied with by the appellants have arisen from the compliance requirements under Electrical Capacitor (Quality Control) Order, 2017 which have been issued by the Government of India, in exercise of the powers vested under Section 14 of the Bureau of Indian Standards Act, 1986. The extract of the relevant provisions of the above Act of 1986 and the Order of 2017 are as follows: 14. Compulsory use of Standard Mark for articles and processes to certain scheduled industries.-- If the Central Government, after consulting the Bureau, is of the opinion that it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MENTS GUIDE FOR INSTALLATION AND OPERATION 6.3. We find that the Commissioner of Customs (Appeals) had given a finding that the imported goods are power capacitor of self-healing type covered under IS 13340 : 1993, on the basis of his careful perusal of the facts of the case, documents on record and the submissions made by the appellants. Further he had also given a finding that the goods mentioned in the impugned Bill of Entry and invoice are mis-declared, and therefore he concluded that the appellants have mis-declared with an intention to import sub-standard goods without fulfilling the mandatory BIS requirement and thus the appellants had violated the provisions of Section 46(4) and 46 (4A) ibid and hence he decided that the goods became liable for confiscation. The learned Commissioner (Appeals) also held that the impugned goods are liable for confiscation under Section 111(d) ibid and the same cannot be allowed for redemption fine as these are prohibited goods . 7. We find from the factual matrix of the case, that the imported goods have been clearly described by the appellants in the B/E No. 7500016 dated 15.02.2022 as CRE Film Capacitor AKMJ-MC 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. is buying the capacitors of specific description Film Capacitor AKMJ-MC 200UF of 330v and Film Capacitor AKMJ-MC 400 UF of 330v for manufacture of various products such as Line Interactive UPS, Single Phase UPS, Three Phase UPS, Solar Inverters, Power Conditioning Solutions, Static Transfer Switch PDU etc. inasmuch as their letter dated 25.02.2022, specifically makes a request for clearance of this shipment covered under the impugned order as early as possible, as the imported equipment are required for UPS systems for critical medical application which are held up due to shortage of the above supply by the appellants. The above facts clearly prove that the imported CRE film capacitors are meant for use as components in the power supply equipment manufactured by M/s Fuji Electric Consul Neowatt Pvt. Ltd. Thus, in terms of paragraph 1.2 (k) of the IS 13340 : 1993, the imported goods are excluded from the scope of coverage as well as compliance with the requirements of IS 13340, as the same are specifically kept out of the items for which of such standards would apply. 9. From the above, we find that appellants have duly filed the B/E in respect of the imported goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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