2014 (5) TMI 673 - AT - Customs

Redemption fine - Penalty - Restriction on import of Secondary/Defective HR Coils covered under CTH No. 7208 through the JNPT, Nhava Sheva - Revenue contends that Import Licensing Note 4 of Chapter 72 and the goods should also be accompanied by a pre-shipment certificate - Held that - as per the Import Licencing Note 4 of Chapter 72, the import of the impugned items from Nhava Sheva Port is restricted but as per Public Notice No. 16/2004-09, dated 15-10-2004, the impugned items have been allowed to be imported from Nhava Sheva Port subject to compliance of certain conditions - The appellant has also complied with the conditions as per the Public Notice cited herein above by way of Pre-shipment Inspection Certificate dated 21-11-2010 and in the case of MTC Business Pvt. Ltd. (2011 (5) TMI 796 - CESTAT, MUMBAI) the import of melting scrap was allowed to be imported from Nhava Sheva Port. Therefore, the impugned goods are also entitled for import from Nhava Sheva subject to the fulfilment of the conditions mentioned in Public Notice No. 16/2004-09, dated 15-10-2004. - Redemption fine and penalty set aside - Decided in favour of assessee.

Summary

Issues:
- Appeal against confirmed redemption fine and penalty
- Compliance with import regulations for Secondary HR Coils
- Interpretation of Import Licensing Note 4 of Chapter 72
- Validity of Public Notice 16/2004-09 for importation conditions
- Comparison with precedent case of MTC Business Pvt. Ltd.
- Adjudication of confiscation, redemption fine, and penalty

Analysis:
The appellant appealed against the confirmed redemption fine and penalty imposed in relation to the clearance of "Secondary HR Coils and End Cuttings" at Nhava Sheva Port. The Revenue contended that the import of such goods was restricted under Import Licensing Note 4 of Chapter 72, requiring compliance with specific conditions. The appellant argued compliance with Public Notice 16/2004-09, issued by DGFT, which allowed importation through Nhava Sheva Port subject to certain conditions. The appellant also cited a precedent case where goods similar to the impugned items were allowed for import through the same port.

Upon considering the submissions and records, it was observed that while Import Licensing Note 4 restricted the import of the impugned items from Nhava Sheva Port, Public Notice 16/2004-09 permitted such importation under specified conditions. These conditions included the requirement for a pre-shipment inspection certificate from designated agencies, ensuring the nature of the imported items and their country of origin. The appellant had complied with these conditions by providing the necessary documentation, including a Pre-shipment Inspection Certificate dated 21-11-2010.

In light of the compliance with the conditions outlined in the Public Notice and the precedent case allowing similar imports through Nhava Sheva Port, the impugned goods were deemed entitled to importation from the port. Consequently, the impugned order imposing redemption fine and penalty on the appellant was set aside, and the appeal was allowed with any consequential relief. This decision was based on a thorough analysis of the import regulations, relevant notices, and the appellant's adherence to the specified conditions.