2014 (7) TMI 1208 - AT - Customs

Import of Cosmetics - commissioner observed that appellant were not able to produce the requisite registration for import of cosmetics under Drugs and Cosmetics Act, 2010 leading to reasonable belief that the same were liable to confiscation under section 111(d) of the Customs Act, 1962. - Held that - appellants later on submitted that they have now obtained the requisite registration certificate from the Drug Control Authority of India and produced the registration certificate before the authorities. Redemption fine and penalty reduced - Decided partly in favor of assessee.

Summary

Issues:
1. Import of cosmetics without requisite registration certificate under Drugs and Cosmetics Act, 2010.
2. Confiscation of imported goods under Section 111(d) of the Customs Act, 1962.
3. Imposition of redemption fine and penalties under relevant sections of the Customs Act, 1962.
4. Delay in obtaining registration certificate and subsequent leniency in decision-making.

Issue 1: Import of cosmetics without requisite registration certificate under Drugs and Cosmetics Act, 2010:
The Commissioner found that the appellant imported cosmetics without the necessary registration certificate under the Drugs and Cosmetics Act, 2010. The Commissioner held that the importer's failure to produce the required registration led to the belief that the goods were liable for confiscation under Section 111(d) of the Customs Act, 1962. Despite the appellant's efforts to obtain the certificate, the Commissioner concluded that the goods were imported before the certificate was acquired, justifying confiscation and penal action under Section 112 of the Customs Act.

Issue 2: Confiscation of imported goods under Section 111(d) of the Customs Act, 1962:
The Commissioner ordered the confiscation of the imported cosmetics valued at a specific amount covered under certain bill of entries. The Commissioner allowed the option to redeem the confiscated goods upon payment of a redemption fine under Section 125 of the Customs Act. Additionally, a penalty was imposed on the importer under Section 112 of the Customs Act for the violation. The Tribunal reviewed the Commissioner's decision and considered the timing of the registration certificate issuance vis-a-vis the import dates, ultimately affirming the confiscation but reducing the redemption fine and penalties.

Issue 3: Imposition of redemption fine and penalties under relevant sections of the Customs Act, 1962:
The Commissioner imposed redemption fines and penalties on the importer for the confiscated goods imported without the required registration certificate. The Tribunal, upon review, reduced the redemption fine and penalties considering the importer's efforts to obtain the certificate, lack of irregularities, and the lenient view taken by the Commissioner. The Tribunal adjusted the redemption fine and penalties for past and present bill of entries based on the circumstances presented during the proceedings.

Issue 4: Delay in obtaining registration certificate and subsequent leniency in decision-making:
The appellant faced delays in obtaining the registration certificate due to additional document requirements by the authority. Despite the delay, the appellant made efforts to follow up with the Drug Controller General of India for the certificate. The Commissioner acknowledged the delays and efforts made by the importer, leading to a lenient view in the decision-making process. The Tribunal considered the delays, subsequent acquisition of the certificate, and the lack of irregularities in the import process, resulting in the reduction of redemption fines and penalties imposed by the Commissioner.

In conclusion, the judgment addressed the issues related to the import of cosmetics without the requisite registration certificate, confiscation under the Customs Act, imposition of fines and penalties, and the impact of delays in obtaining necessary documentation on the decision-making process. The Tribunal upheld the confiscation while adjusting the redemption fines and penalties based on the circumstances presented during the proceedings.