2006 (11) TMI 413 - AT - Customs

Summary

Issues:
1. Confiscation of imported Heavy Melting Scrap due to lack of pre-shipment inspection certificate.
2. Validity of inspection certificates issued by BIVAC International, Liberia.
3. Interpretation of DGFT Circular No. 19/2004-09 dated 18-2-2005.
4. Application of circular to inspections carried out before its issuance.

Issue 1: Confiscation of imported Heavy Melting Scrap
The appellant imported Heavy Melting Scrap and faced confiscation due to the absence of a pre-shipment inspection certificate from an authorized agency. The lower authorities based their decision on this ground.

Issue 2: Validity of Inspection Certificates
The appellant argued that BIVAC International, Liberia, a group company of Bureau Veritas, issued the inspection certificate. They contended that Bureau Veritas, Mumbai, an authorized agency, also issued a pre-shipment inspection certificate for the consignments. The appellant claimed that even if BIVAC's certificate was considered unauthorized, Bureau Veritas' certificate should have been accepted.

Issue 3: Interpretation of DGFT Circular
The lower authorities rejected the appellant's submissions citing DGFT Circular No. 19/2004-09 dated 18-2-2005, which stated that certificates from branded offices would be accepted only if the branch office had the necessary facilities. The appellant argued that this clarification should not apply as the inspections were conducted before the circular's issuance.

Issue 4: Application of Circular
The Tribunal agreed with the appellant that the circular issued in February 2005 should not govern actions taken before its issuance. As the inspections and shipments occurred before the circular, the lower authorities were deemed unjustified in confiscating the consignments based on the later clarification. Consequently, the impugned order was set aside, and the appeals were allowed with any consequential relief due to the appellant.