2016 (12) TMI 1152 - AT - Customs

Seizure - arms and ammunition - Redemption fine - Penalty - Held that - I find that the Bill of Entry was filed on 29.4.2006 for the LMS Pressed Bundle Scrap from Hodeidah Port, Yeman and received under invoice dated 10.4.2006; the said invoice along with the packing list was accompanied by a pre-shipment inspection certificate from the Registered Inspecting Authorities; on 100% examination, the description of the goods as declared was found to be correct except that they were not in shredded form - It can be seen from the clause 2.32 of the Handbook of Procedure (Vol-I) that it gives a window of two months for importing the goods subject to the condition that pre-shipment inspection certificate is accompanied the goods - also, there are no arms and ammunition found in the said scrap which has been imported - Appeal allowed.

Summary

Issues:
Import of un-shredded scrap, Confiscation under Customs Act, 1962, Redemption fine, Pre-shipment inspection certificate, Handbook of Procedure 2.32, Violation of import provisions, Relevant case laws.

Analysis:
The appeal was against an Order-in-Original passed by the Commissioner of Customs & Central Excise, Nagpur, regarding the import of LMS Pressed Bundle Scrap. The lower authorities confiscated the goods as they were not in shredded form, as required by revised provisions of Handbook of Procedure 2.32 from 1.4.2006. The goods were seized, and a show-cause notice was issued for confiscation under Section 111(d) of the Customs Act, 1962. The adjudicating authority imposed a redemption fine of ?2 lakhs and a penalty of ?1 lakh. The appellant challenged this decision, citing the oversight of clause (g) of para 2.32, allowing imports on the basis of pre-shipment inspection certificate until 30.6.2006. The appellant relied on relevant case laws to support their argument.

The learned Counsel argued that the adjudicating authority correctly confiscated the un-shredded scrap, imposing a redemption fine and penalty. However, the Tribunal found the impugned order unsustainable for multiple reasons. Firstly, the Bill of Entry was filed with all relevant documents, including a pre-shipment inspection certificate. The goods were not in shredded form, but the clause in the Handbook of Procedure allowed imports until 30.6.2006 with the certificate. The Tribunal noted the absence of arms and ammunition in the scrap and referenced a relevant High Court decision. Consequently, the Tribunal set aside the impugned order, allowing the appeal.

In conclusion, the Tribunal held that the impugned order was unsustainable and set it aside, allowing the appeal due to the correct filing of documents and the allowance for imports until 30.6.2006 with a pre-shipment inspection certificate as per the Handbook of Procedure. The decision was based on a thorough analysis of the relevant provisions and case laws, ensuring a fair outcome for the appellant.