2004 (5) TMI 465 - AT - Customs

Summary

Issues:
1. Whether restricted goods, when imported but not cleared by Customs, can be confiscated.
2. Whether the imported goods in this case are liable for confiscation under Section 111(d) of the Customs Act.
3. Interpretation of Clause 3(P) of the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993.

Analysis:

1. The case revolved around the issue of whether restricted goods, when imported but not cleared by Customs, can be confiscated. The appellant argued that the goods were not liable for confiscation as they had not been cleared from Customs. The Department contended that the goods were liable for confiscation due to contravention of the import policy, citing a previous Tribunal case. The Tribunal deliberated on this issue.

2. The Tribunal examined whether the imported goods were liable for confiscation under Section 111(d) of the Customs Act. The Commissioner had held that the goods were liable to be confiscated and imposed a fine and penalty. However, the Tribunal found that the goods were covered under a valid carnet, exempting them from licensing formalities. The Tribunal concluded that the goods did not require an import license and were wrongly confiscated by the Commissioner.

3. The Tribunal analyzed Clause 3(P) of the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993, which exempts goods imported temporarily for specific events. The impugned goods were covered under a valid carnet and satisfied all requirements of the clause. Despite the lack of a certificate, the goods were exempt from licensing formalities. The Tribunal held that the Commissioner erred in confiscating the goods and imposing a penalty, as the goods fell under the exemption provided by Clause 3(P).

In conclusion, the Tribunal set aside the Commissioner's order, allowing the appeal in favor of the appellant. The judgment clarified that goods covered by a valid carnet and meeting the requirements of the exemption clause are not subject to confiscation, even if not cleared by Customs due to administrative formalities.