2008 (10) TMI 569 - AT - Customs

Confiscation, penalty and fine - Description of goods in Bill of Entry not tallied with Advance Licence

Summary

Issues:
1. Confiscation of goods under Section 111(d) of the Customs Act, 1962 due to mismatch in goods description in Bill of Entry and Advance Licence.
2. Validity of subsequent amendment in the licence by DGFT after confiscation and penalty imposition.
3. Interpretation of para 2.26 of Chapter 2 of Foreign Trade Policy and Handbook of Procedures.
4. Application of the decision in Garware Wall Ropes Ltd. case to the present scenario.

Analysis:
1. The case involved the confiscation of goods under Section 111(d) of the Customs Act, 1962 due to a discrepancy in the description of goods in the Bill of Entry and the Advance Licence. The Adjudicating Authority allowed redemption of goods on payment of fines and penalties, subject to amending the licence to cover the goods.

2. The Revenue contended that subsequent amendment in the licence by DGFT post-confiscation cannot absolve the importer of the offense committed. They argued that the goods were imported without a valid advance licence, and the amended licence was not in existence during the relevant periods.

3. The respondents, relying on the Commissioner (Appeals) findings, highlighted para 2.26 of Chapter 2 of Foreign Trade Policy and Handbook of Procedures. They emphasized that goods already imported but not cleared from customs can be cleared against an Authorization issued subsequently. The amended licence allowed duty-free clearance of the goods meant for export.

4. The Tribunal referred to the Garware Wall Ropes Ltd. case, where it was held that once a licence is issued by the Competent Authority, the Commissioner (Appeals) cannot override the import. In the present case, the goods were cleared under the amended licence issued by the competent authority, leading to the rejection of the Revenue's appeal. The Tribunal found no reason to interfere with the Commissioner (Appeals) decision, as confiscation and penalty imposition were deemed unsustainable based on the circumstances.

This comprehensive analysis of the judgment covers the key issues raised, arguments presented by both sides, relevant legal provisions, and the application of precedent to the current case, resulting in the rejection of the Revenue's appeal.