2011 (6) TMI 32 - AT - Customs

Fine and penalty - Import - Registration Certificate - Rule 6(ii) of the Batteries (Management & Handling) Rules, 2001 - The reason why the appellants could not produce the registration Certificate within six months time allowed is genuine and is attributable to delay in issuing the registration Certificate by the concerned Ministry of Environment and Forest - the appellants had applied for the Certificate itself - Essentiality Certificate produced subsequent to clearance had been accepted, held that the stipulation regarding registration Certificate has been satisfied by the appellants - Hence, the impugned order is set aside and the appeal is allowed - The stay petition also stands disposed of.

Summary

Issues:
Import of Lead Acid Batteries without required registration Certificate under the Batteries (Management & Handling) Rules, 2001.

Analysis:
The appellant imported Lead Acid Batteries without the necessary registration Certificate, as required by Rule 6(ii) of the Batteries (Management & Handling) Rules, 2001, from November 2005 to February 2006. They later obtained the required Certificate from the Ministry of Environment & Forest on 11.05.2007. The appellant's advocate argued that the delay in obtaining the Certificate was due to the Ministry's delay in issuance, despite the application being submitted promptly. Customs authorities provisionally cleared the goods with the condition that the Certificate would be provided within six months. The advocate cited relevant decisions to support the appeal.

The respondent, represented by the SDR, contended that the Certificate should have been produced at the time of clearance, which the appellants failed to do. However, the Tribunal noted that the delay in obtaining the Certificate was genuine and beyond the appellant's control, as evidenced by the application submission date and the delay in issuance by the Ministry of Environment & Forest. Considering similar precedents where Essentiality Certificates produced post-clearance were accepted, the Tribunal held that the appellants had satisfied the requirement of the registration Certificate. Consequently, the impugned order imposing fines and penalties was set aside, and the appeal was allowed. The stay petition was also disposed of accordingly.