2006 (10) TMI 308 - AT - Customs

Summary

Issues:
1. Validity of pre-inspection certificate by a de-recognized agency.
2. Confiscation of imported consignment and imposition of penalty.

Issue 1: Validity of pre-inspection certificate by a de-recognized agency:
The appellant imported 12 containers of HMS scrap on High Sea Sale basis and submitted a pre-inspection certificate issued by a de-recognized agency, leading to a show cause notice for violation. The appellant argued that the inspection agency was accredited at the time of issuing the certificate and the goods were correctly declared. The adjudicating authority, however, held that the agency's de-recognition rendered the import liable for confiscation and penalty. The appellant contended that even if the agency was de-recognized later, the certificate's validity should be upheld as the goods were inspected and found in order. The Tribunal agreed, emphasizing that the inspection agency was accredited when the certificate was issued, and subsequent de-registration did not invalidate it. As the goods were found compliant upon examination, the confiscation and penalty were deemed unsustainable.

Issue 2: Confiscation of imported consignment and imposition of penalty:
The appellant purchased the consignment after thorough document verification, including the pre-inspection certificate. The Revenue argued that the agency provided incorrect certificates prior to de-recognition by the Ministry of Commerce. The Tribunal noted that the goods were examined, found as declared, and the pre-inspection certificate was issued by an accredited agency at the time. As the inspection agency's de-registration did not affect the certificate's validity, the impugned order confiscating the goods and imposing a penalty was set aside. The Tribunal allowed the appeal, granting consequential relief.

In conclusion, the Tribunal upheld the validity of the pre-inspection certificate despite the agency's de-recognition, leading to the setting aside of the order confiscating the goods and imposing a penalty. The appeal was allowed, providing relief to the appellant based on the correct issuance of the certificate and the compliance of the imported goods with the declaration.