2003 (7) TMI 414 - AT - Customs

Summary

Issues:
Import of High Speed Diesel Oil without a valid license and export orders, Confiscation of goods, Penalty imposition under Customs Act, 1962, Seeking clarifications on import regulations from the Director General of Foreign Trade, Re-examination of the case based on clarifications received.

Import of High Speed Diesel Oil without a valid license and export orders:
The case involved M/s. B.G.H. Exim Ltd. importing High Speed Diesel Oil (HSD) under a warehousing license without a valid import license or export/supply orders. The Customs Department issued a show cause notice proposing confiscation of the HSD and penalties under Sections 111(d), 111(m), and 112 of the Customs Act, 1962. The Commissioner of Customs confiscated the consignment, imposed penalties, and directed specific conditions for redemption and supply of goods. The appellants argued that they sought clarifications from the Director General of Foreign Trade, who confirmed that HSD could be imported under a customs bond without an import license.

Confiscation of goods and Penalty imposition under Customs Act, 1962:
The Commissioner of Customs confiscated the HSD consignment due to non-compliance with import regulations and imposed penalties on the importer and Chief General Manager. The appellants sought a re-examination of the case based on clarifications received from the Director General of Foreign Trade, indicating that HSD could be imported under a customs bond without an import license. The Tribunal agreed that the matter required fresh consideration by the Commissioner of Customs in light of the clarifications and directed a re-examination with an opportunity for the appellants to present their defense.

Seeking clarifications on import regulations from the Director General of Foreign Trade:
The appellants sought clarifications from the Director General of Foreign Trade regarding the import of HSD under a customs bond without an import license. The Director General confirmed that restricted items like HSD could be imported under a customs bond without an import license, providing clarity on the matter. The appellants requested the Tribunal to send the case back to the Commissioner of Customs for re-examination based on the received clarifications.

Re-examination of the case based on clarifications received:
The Tribunal, after considering the submissions from both sides and the clarifications received from the Director General of Foreign Trade, allowed the appeals by way of remand. It directed the Commissioner of Customs to re-examine the case in light of the clarifications provided, ensuring a fair opportunity for the appellants to present their defense before passing a fresh order in accordance with the law.