2016 (12) TMI 469 - AT - Customs

Classification of goods - old and used tyres - classified under CTH 40122020 or under schedule III Part B- List of Hazardous Wastes Applicable for Import & Export of Hazardous Waste (Management, Handling & Transboundary Movement) Rules, 2008 at Basel No. B-3140 with description as Waste of Pneumatic Tyres which can be imported with the permission of Ministry of Environment and Forest - The Original Authority, therefore, ordered confiscation of the goods imported under Section 111(d) & (o) of the Customs Act, 1962 and gave an option to redeem the goods on payment of redemption fine of ₹ 2,75,000/- under Section 125 of the Customs Act, 1962 and ordered re-export of the same goods and also imposed penalty of ₹ 1,35,000/- on appellant under Section 112 (a) of Customs Act, 1962. Held that - I find that ordering of confiscation and again ordering re-export of confiscated goods is contrary to each other. On absolute confiscation, the goods became property of Government of India and appellant does not have any authority to export the same - confiscation of goods upheld with imposition of redemption fine of 15% of assessable value - imposition of penalty upheld to 10% of assessable value - the applicable duty on the assessable value shall be payable if the goods are taken/released on payment of Customs duty, redemption fine and penalty. The goods shall be released by completing customs formality within two weeks of payment of customs duty, redemption fine and penalty - appeal allowed - decided partly in favor of appellant.

Summary

Issues Involved:
Classification of imported goods under CTH 40122020, Compliance with Hazardous Wastes Rules 2008, Confiscation of goods under Customs Act 1962, Imposition of redemption fine and penalty, Applicability of previous Tribunal's judgment.

Classification Issue:
The appellant imported old and used tyres claiming classification under CTH 40122020. Revenue argued that these tyres fell under Hazardous Wastes Rules 2008, requiring authorization from DGFT and Ministry of Environment and Forest. The Original Authority ordered confiscation of goods and imposed a redemption fine and penalty. The Commissioner (Appeals) upheld this decision. The appellant contended that the import of old tyres did not require a special license as per the Foreign Trade Policy, and the goods were reusable, not scrap. The appellant also cited a previous Tribunal's judgment to support their case.

Compliance with Hazardous Wastes Rules 2008:
The appellant argued that the consignment of old and used tyres did not fall under the Hazardous Wastes Rules 2008. They relied on a previous Tribunal's judgment in a similar case to support their claim. The Tribunal reviewed the case records and found that the ordering of confiscation and re-export of goods was contradictory. The Tribunal modified the Order-in-Appeal and Order-in-Original to allow redemption of the confiscated goods on payment of a fine and penalty.

Confiscation of Goods and Imposition of Fine:
The Original Authority had ordered confiscation of the imported goods under the Customs Act 1962, with an option to redeem the goods on payment of a fine. The Commissioner (Appeals) upheld this decision. The Tribunal modified the orders, upholding the confiscation but allowing redemption of the goods on payment of a fine equal to 15% of the assessable value. The Tribunal also upheld the imposition of a penalty equal to 10% of the assessable value.

Applicability of Previous Tribunal's Judgment:
The appellant relied on a previous Tribunal's judgment in a similar case to argue that the import of old and used tyres did not require permission from the Ministry of Environment and Forest. The Tribunal reviewed the previous judgment and found it applicable to the present case. Based on this judgment, the Tribunal modified the orders, allowing redemption of the goods on payment of a fine and penalty.

This detailed analysis covers the classification issue, compliance with Hazardous Wastes Rules 2008, confiscation of goods, imposition of fines, and the applicability of a previous Tribunal's judgment in the legal judgment delivered by the Appellate Tribunal CESTAT ALLAHABAD.