2010 (9) TMI 426 - AT - Customs

Exim import of copper cable scrap druid grade - confiscation of the druid grade copper scrap imported units Registered with Central Pollution Control Board for obtaining and processing for specified items listed in their registration certificate Held that - the ordinary copper scrap totally valued at Rs. 19.84 lakhs approximately did not require any licence or registration with CPCB and as such the same cannot be held liable for confiscation. - the druid grade copper scrap is liable for confiscation, - redemption fine reduced from Rs. 1.20 crores to Rs. 3 lakhs (Rupees Three lakhs only) and determine the penalty amount as Rs. 50,000/- (Rupees Fifty Thousands only).

Summary

Issues:
1. Confiscation of imported scrap by the Commissioner.
2. Imposition of penalties under Section 112(a) of the Customs Act, 1962 for non-accompaniment of pre-shipment inspection certificate.

Analysis:
1. The judgment involves the confiscation of imported scrap by the Commissioner from various appellants, including M/s. Sameer Industries, M/s. Raja Zinc Pvt. Ltd., and M/s. Metal Link Alloys Pvt. Ltd. The Commissioner confiscated copper cable scrap and plastic scrap based on lack of valid import licenses and non-compliance with Hazardous Waste Rules. The appellants argued that registration with CPCB exempted them from the need for import licenses. The Tribunal found merit in the appellants' contentions and set aside the confiscation of certain scrap items while upholding the confiscation of plastic scrap due to the absence of a required license.

2. Regarding penalties imposed for non-production of pre-shipment inspection certificates, the appellants contended that most consignments were imported before the circular mandating such certificates. Citing precedents and the absence of war material in the imports, the Tribunal set aside the penalties, considering the timing of imports in relation to the circular and the lack of evidence of prohibited items. The judgment reduced redemption fines and penalties for certain appellants while overturning penalties for non-compliance with pre-shipment inspection certificate requirements.

In conclusion, the Tribunal upheld the confiscation of certain scrap items while reducing redemption fines and penalties for non-compliance. The judgment provided detailed reasoning for each issue involved, considering legal provisions, precedents, and specific circumstances of each appellant's case.