2012 (11) TMI 998 - AT - Customs

Confiscation and redemption fine and penalty - importation of Heavy Melting Steel Scrap - appellant not obtained pre-shipment certificate Held that - According to the Foreign Trade Policy during the relevant time, pre-shipment certificate was essential for import of shredded heavy melting scrap - pre-shipment certificate was not produced and in the second case, the requirement of shredding has been fulfilled - appellant has suffered heavy demurrage charges, a lenient view is called for - redemption fine and penalty imposed on the Heavy Melting Scrap reduced

Summary

Issues involved: Importation of Heavy Melting Steel Scrap, Requirement of pre-shipment certificate, Confiscation of consignments, Imposition of redemption fine and penalty, Reduction of fine and penalty based on demurrage charges.

Analysis:

1. Importation of Heavy Melting Steel Scrap: The issue in both appeals revolved around the importation of shredded heavy melting steel scrap without obtaining the necessary pre-shipment certificate as mandated by the Foreign Trade Policy during the relevant period. Due to non-compliance, both consignments were confiscated, and a redemption fine along with penalties were imposed on the appellant.

2. Submission by Appellant: The appellant's consultant argued that the consignment delay led to significant demurrage charges, requesting a lenient approach towards the redemption fine and penalty. Highlighting the financial burden faced by the appellant due to the extended holding period of the consignments, a plea for reduced penalties was made.

3. Submission by Commissioner (AR): The Commissioner (AR) contended that the redemption fine and penalties, set at approximately 15% in both cases, were reasonable considering the circumstances of the importation.

4. Judgment and Reduction of Fine/Penalty: After considering the arguments from both sides, the judge acknowledged the absence of pre-shipment certificates and the fulfillment of shredding requirements in the second case. Recognizing the appellant's heavy demurrage charges, a lenient view was adopted. Consequently, the redemption fine and penalties for the Heavy Melting Scrap in appeal No. 150/2010 were reduced to Rs. 35,000/- and Rs. 15,000/- respectively. In appeal No. 151/2010, the redemption fine was reduced to Rs. 1,00,000/- and penalty to Rs. 50,000/-. The judge upheld the impugned orders except for the mentioned reductions, ultimately rejecting the appeals.

This detailed analysis of the judgment highlights the key issues, submissions, and the final decision made by the tribunal regarding the importation of Heavy Melting Steel Scrap and the associated penalties.