2006 (1) TMI 514 - AT - Customs

Summary

Issues:
1. Confiscation of goods under Section 111(d), (l) & (m) of the Customs Act, 1962.
2. Imposition of penalty under Section 112 of the Act.
3. Applicability of Section 111(d) to the goods in question.
4. Importability of the goods under the import policy.

Analysis:
The appellant had ordered a consignment of 'load cells' from M/s. Bodra Trading Co., Dubai but failed to file a Bill of Entry for clearance as the invoiced value was lower than the actual value. The original authority held the goods liable for confiscation under Section 111(d), (l) & (m) of the Customs Act, 1962, and imposed a penalty of Rs. 1.5 lakhs under Section 112. The first appellate authority, noting the absence of a Bill of Entry, found Section 111(l) & (m) irrelevant but upheld the confiscation under Section 111(d), thereby affirming the penalty. The appellant challenged this decision.

Upon review, the Tribunal found no dispute regarding the classification of 'load cells' under Heading 90.31 of the Customs Tariff Act and their free importability under the import policy. As there was no prohibition against importing load cells at the time, Section 111(d) was deemed inapplicable. Consequently, the goods were not liable for confiscation, leading to the conclusion that no penalty should have been imposed on the importer. This interpretation was supported by precedents such as CC, ICD, TKD, New Delhi v. Sewa Ram & Bros. and Baburam Premchand v. CC (Imports), Chennai, where penalties were set aside for failure to file a Bill of Entry.

In light of the above findings, the Tribunal set aside the impugned order, allowing the appeal and ruling in favor of the appellant.