2015 (5) TMI 960 - AT - Customs

Imposition of redemption fine - appellant imported vessels, ships for breaking purpose only and not for trading - Held that - Tribunal in the case of RK Industries and Others Vs. CEC., Jamnagar 2015 (9) TMI 369 - CESTAT AHMEDABAD set aside redemption fine and penalty. The Tribunal followed the earlier decision in the case of AG Enterprises and Others VS. CC (Preventive), Jamnagar, 2014 (8) TMI 44 - CESTAT AHMEDABAD - Redemption fine and penalty is set aside - Decided in favour of assessee.

Summary

Issues:
- Application for Early Hearing of the appeal
- Setting aside of the redemption fine and penalty for violation of import/export policy

Analysis:
1. Application for Early Hearing of the Appeal:
The applicant filed an application for early hearing of the appeal, which was considered by the Tribunal. After hearing both sides and examining the records, the Tribunal found that the appeal could be decided at that stage.

2. Setting Aside of Redemption Fine and Penalty:
The appellant imported vessels and ships for breaking purposes only, not for trading. The Adjudicating Authority imposed redemption fine and penalty for violating the import/export policy due to the presence of Diesel Oil (HSD, LDO) in the vessel imported for scrapping. However, the Tribunal referred to a similar case involving RK Industries and Others where redemption fine and penalty were set aside. The Tribunal cited the Foreign Trade Policy provisions, stating that any doubt regarding classification of items should be referred to DGFT, whose decision is final and binding. The Tribunal also highlighted the importance of clarifications on Import Policy issued by the office of DGFT, emphasizing their binding nature on Customs concerning ITC Policy. Based on these considerations and following the precedent set by earlier decisions, the Tribunal set aside the redemption fine and penalty imposed on the appellant. Consequently, the appeal was disposed of in favor of the appellant, and the early hearing application was also disposed of by the Tribunal.

This judgment from the Appellate Tribunal CESTAT AHMEDABAD highlights the importance of adhering to Foreign Trade Policy provisions and the significance of clarifications issued by DGFT in determining the classification of items for import purposes. The decision emphasizes the binding nature of such clarifications on Customs authorities and underscores the need for consistency in applying these policies.