2015 (10) TMI 1718 - AT - Customs

Import of restricted goods - import of plastic content in the paper waste without declaration - Confiscation of goods - Held that - the same is clearly liable for confiscation as they do not fulfil the condition for the import thereof. Also as a consequence, the used paper collected as road sweepings is liable to confiscate under Section 119 ibid as the goods used for concealing the smuggled goods, namely, the used plastic waste. Clause 7 of their contract with the suppliers provided for final load port quality inspection on seller s account by surveyor mutually agreed upon. It is obvious that they had stipulated pre-shipment inspection that the goods imported were as per declaration in the Bill of Entry. Thus, the appellants cannot fully absolve themselves of the responsibility to ensure that the goods imported were as per their declaration in the Bill of Entry. - No infirmity in impugned order - Decided in favour of Revenue.

Summary

Issues: Import of plastic waste without declaration and license, confiscation of goods, waiver of Show Cause Notice, liability for confiscation of goods used for concealing smuggled goods, responsibility of ensuring goods match declaration in Bill of Entry.

Issue 1: Import of plastic waste without declaration and license
The case involves the import of goods, specifically mixed paper waste containing plastic content, without proper declaration by the appellant in the Bill of Entry. The examination of goods revealed a discrepancy in the content, leading to the seizure of goods under Section 110(1) of the Customs Act, 1962. The appellant failed to produce any evidence, such as a license issued by the office of DGFT for the import of plastic waste. The Central Institute of Plastic Engineering & Technology confirmed the nature of the goods as Polyethylene Terephthalate, leading to the confiscation of the used plastic waste.

Issue 2: Waiver of Show Cause Notice
The appellant did not appear before the Tribunal, and no request for adjournment was made. Citing a Supreme Court decision, the Tribunal proceeded to decide the appeal on merits despite the absence of the appellant or their counsel. The appellant's waiver of the Show Cause Notice indicated their voluntary agreement to forego their right to natural justice to a certain extent.

Issue 3: Liability for confiscation of goods used for concealing smuggled goods
The Tribunal found that the used paper collected as road sweepings was liable for confiscation under Section 119 of the Customs Act as it was used for concealing the smuggled plastic waste. The appellant's responsibility to ensure the accuracy of goods imported as per the declaration in the Bill of Entry was emphasized, especially since their contract with suppliers included provisions for pre-shipment inspection to match the declaration.

Judgment
The Tribunal upheld the primary order of confiscation and penalty imposed on the appellant for importing plastic waste without proper declaration and license. The decision was based on the appellant's failure to meet the conditions for import, the liability for confiscation of goods used for concealing smuggled goods, and the responsibility to ensure goods match the declaration in the Bill of Entry. The appeal was rejected, and no infirmity was found in the impugned order, leading to the affirmation of the confiscation of the used plastic waste and the penalty imposed on the appellant.