2008 (9) TMI 790 - AT - Customs

Summary

Issues involved: Validity of PSI certificate under EXIM Policy, confiscation of goods, penal action.

In the judgment by the Appellate Tribunal CESTAT, KOLKATA, the Appellants imported Melting Scrap from South Africa subject to pre-shipment inspection u/s the EXIM Policy. Customs Authorities found the PSI certificate defective, leading to 100% examination post-importation. The Appellants argued no misdeclaration was found, and demurrage costs were incurred due to the examination. The Respondent supported the confiscation citing the necessity of a valid PSI certificate as per the law.

The Tribunal acknowledged the importance of PSI certification to prevent dangerous items in imports. Despite the Appellants' efforts to obtain the certificate, its defects were beyond their control. With no issues found in the examination and considering the demurrage costs suffered, the Tribunal upheld confiscation but reduced the Redemption Fine to Rs. 25,000 and waived the penalty, partially allowing the Appeal.