2009 (10) TMI 804 - AT - Customs

Confiscation of re-rollable scrap imported by the appellants - confiscation on the ground that the importers did not produce Pre-shipment Inspection Certificate - Held that - The Hon ble High Court of Gujarat in the case of Commissioner of Customs v. Senor Metals Pvt. Ltd. 2008 (8) TMI 238 - GUJARAT HIGH COURT has held that non-compliance with the fulfillment of conditions such as production of Pre-shipment Inspection Certificate may entail an importer to undergo 100% inspection of entire consignment and that would not tantamount to improper import of goods as per the Section 111 of the Customs Act, 1962. The goods were examined and not found to contain any prohibited articles - confiscation and penalty set aside - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the importers, setting aside the confiscation and penalty imposed on 're-rollable scrap' due to non-production of Pre-shipment Inspection Certificate. The tribunal cited a High Court decision stating that lack of certificate may require 100% inspection but does not constitute improper import under Customs Act, 1962. The goods were inspected and found free of prohibited items. The appeal was allowed.