2011 (10) TMI 122 - AT - Customs

Goods imported without getting an IE code - Penalty imposed u/s 117 - seeking confiscation of the imported goods - Held that no details regarding nature/description of the goods, value of the goods imported and whether the goods were prohibited or not is available. Under these circumstances, confiscating the goods whose details are not available may not be appropriate - found to be only a case of a procedural violation - no valid reason to interfere with the order of the Commissioner (Appeals) - Penalty sustained

Summary

Issues:
Import of goods without Importer-Exporter Code (IEC) number, imposition of penalty under Section 117 of the Customs Act, 1962, appeal for confiscation of goods, procedural violation.

Analysis:
The case involved the import of goods by the respondent without having an Importer-Exporter Code (IEC) number allotted by the Directorate General of Foreign Trade (DGFT). The original authority imposed a penalty of Rs. 2,000 under Section 117 of the Customs Act, 1962, for this violation. Subsequently, the department appealed to the Commissioner (Appeals) seeking confiscation of the imported goods. However, the Commissioner rejected the appeal, leading the department to file an appeal before the Tribunal to set aside the Commissioner's order dated 31.10.2008.

Upon hearing the arguments and reviewing the grounds of appeal, the judge noted the absence of crucial details such as the nature and value of the imported goods, and whether they were prohibited items. Due to the lack of essential information, the judge deemed it inappropriate to confiscate goods without complete details. The appeal sought only to overturn the Commissioner's decision, which would essentially revert the case to the original authority's ruling.

The judge further emphasized that the case primarily involved a procedural violation without any allegations of misdeclaration of goods or non-payment of customs duty. Given these circumstances, the judge found no valid reason to interfere with the Commissioner's decision, which upheld the penalty imposed on the respondent for importing goods without the required IEC number.

In conclusion, the Tribunal upheld the penalty imposed on the respondent for importing goods without an Importer-Exporter Code, as there was no evidence of misdeclaration or non-payment of customs duty, and the appeal primarily focused on procedural aspects without providing essential details about the imported goods.