2009 (1) TMI 651 - AT - Customs

Summary

Issues involved:
The issues involved in this case are the import clearance of old and used generators, violation of Customs Act u/s 111(d), requirement of a specific license for import, applicability of Environment (Protection) Rules, 1986, and the justification for confiscation.

Judgment Summary:

Issue 1: Import clearance of generators
The Appellants, civil contractors and engineers, imported old generators along with other equipment for a sewerage project. Customs allowed clearance for some items but not for the generators due to lack of a specific license, leading to a violation of Section 111(d) of the Customs Act, 1962.

Issue 2: Violation of Customs Act and Environment Rules
The Commissioner confiscated the generators under Section 111(d) of the Customs Act, 1962, citing violation of the Environment (Protection) Rules, 1986. The Appellants paid a redemption fine and penalty to clear the other items.

Issue 3: Appeal and License Application
The Appellants argued that the generators were essential for the sewerage project and applied for a license post-confiscation. They obtained a specific license subsequently, which covered the generators, and sought clearance based on this license.

Issue 4: Legal Arguments
The Appellants contended that the license issued by the Licensing Authority should allow clearance of the generators as per relevant policy provisions. They referenced previous tribunal orders to support their case.

Issue 5: Defense and Counter-arguments
The Departmental Representative defended the confiscation, citing policy provisions and environmental regulations. They emphasized the invalidity of the license for clearance based on noise pollution norms and larger bench decisions.

Issue 6: Tribunal Decision
The Tribunal considered the specific license obtained by the Appellants and found no justification for the confiscation. The Tribunal held that the Appellants' case aligned with previous tribunal orders and that the Licensing Authority had considered all aspects before issuing the license.

Conclusion:
The Tribunal set aside the redemption fine and penalty, allowing the clearance of the generators for home consumption upon payment of appropriate customs duties. The appeal by the Appellants was allowed, and the Commissioner's order was overturned.