2008 (3) TMI 138 - AT - Customs

Metal scrap confiscated on ground that consignments were imported without receiving pre-inspection certificate from any nominated agencies appellants received certificate from Moody International, Iran - appellant s contention was that they were under bona fide belief that M/s. Moody International, Iran is an associate concern of M/s. Moody International, India(one of the nominated agency) hence penalty is not imposable

Summary

Issues:
Import of metal scrap with invalid inspection certificates leading to penalties on the shipping company.

Analysis:
The case involved multiple appeals by a common appellant regarding the import of metal scrap using containers and ships owned by them. The consignments were imported from a war-torn area during November and December 2004. The Customs Circular No.56/2004 mandated that every consignment of metal scrap must be accompanied by a pre-shipment inspection certificate to prevent irregular imports. The appellant received inspection certificates from M/s. Moody International, Iran, instead of the nominated agency M/s. Moody International, India. Customs authorities found discrepancies in the certificates and discovered small quantities of used shell cartridges in the consignments, leading to the confiscation of offending consignments and penalties ranging from Rs.1,00,000/- to Rs.2,60,000/- on the shipping company.

The Tribunal considered the submissions and reviewed the records, concluding that there was no evidence indicating the appellant's knowledge or intention to violate customs law. The Tribunal did not express a definitive opinion on the validity of the certificates issued by Moody International, Iran. Ultimately, the Tribunal held that there was insufficient evidence against the appellant to justify the penalties imposed. Consequently, the penalties were set aside, and all the appeals were allowed with consequential relief. The judgment highlighted the importance of evidence and intention in determining liability under customs law, emphasizing the need for a clear violation to warrant penalties.