2003 (4) TMI 471 - AT - Customs

Summary

Issues:
1. Confiscation of Bullet Proof Jacket under Arms and Ammunition Act, 1959.
2. Imposition of personal penalty on the importers.
3. Interpretation of import policy regarding Bullet Proof Jackets.
4. Contradictory provisions between Import Trade provision and Customs Law.
5. Waiver of penalty imposed on the importers.

Confiscation of Bullet Proof Jacket under Arms and Ammunition Act, 1959:
The Additional Commissioner confiscated the Bullet Proof Jacket, deeming it unauthorized under the Arms and Ammunition Act, 1959, and Notification No. 40/70. The appellants argued that the Bullet Proof Jacket should be allowed free under the import policy, as it is not an instrument or device falling under arms category. The department contended that the definition of arms under the Arms Act is broad, covering articles used for defense, like the Bullet Proof Jacket. The Tribunal found that while life Jackets are allowed free under the import policy, there is no specific exception for Bullet Proof Jackets. As the Bullet Proof Jacket can be considered an article of defense falling under the Arms Act, its import was deemed absolutely prohibited under Notification No. 40-Cus., dated 6-6-1970. The Tribunal upheld the confiscation due to lack of evidence proving import for the Maharashtra Police.

Imposition of personal penalty on the importers:
The Additional Commissioner imposed a personal penalty of Rs. 7,000 on the importers. The Tribunal, considering the contradictory provisions in the import policy and Customs Law regarding Bullet Proof Jackets, decided to waive the penalty imposed on the appellants due to the complexity and ambiguity of the regulations.

Interpretation of import policy regarding Bullet Proof Jackets:
The appellants argued that the Bullet Proof Jacket should be exempt from penalty as it falls under a category allowed free under the import policy. However, the department contended that the broad definition of arms under the Arms Act includes articles used for defense, like the Bullet Proof Jacket. The Tribunal noted the lack of specific exception for Bullet Proof Jackets under the import policy, leading to the conclusion that its import is prohibited under Notification No. 40-Cus., dated 6-6-1970.

Contradictory provisions between Import Trade provision and Customs Law:
The Tribunal observed contradictory provisions regarding the import of Bullet Proof Jackets under the Import Trade provision and Customs Law. While life Jackets are allowed free under the import policy, there is no explicit exception for Bullet Proof Jackets. The Tribunal highlighted the need for a clear exception in the import policy if the government intends to restrict the import of Bullet Proof Jackets to prevent misuse by unauthorized entities.

Waiver of penalty imposed on the importers:
Due to the conflicting regulations and lack of clarity regarding the import of Bullet Proof Jackets, the Tribunal deemed it appropriate to waive the penalty imposed on the importers. The Tribunal dismissed the appeal, except for the waiver of the penalty, considering the complexity and ambiguity surrounding the import regulations for Bullet Proof Jackets.