2017 (4) TMI 633 - AT - Customs

Import of Prohibited goods - gun cartridges imported by M/s Nanda Armed Corporation as well as M/s Nanda Shastralaya, Lucknow - the case of the Revenue is that the import license produced by the importers did not cover the imported goods - Held that - The crucial issue on which the case can be decided is whether .32 rifle cartridges, which are permitted for import with import licence, will cover the .32 revolver cartridges imported in the present case. Such an issue can be laid to rest only by drawing a sample from the imported consignment and sending it for expert opinion from the Authorised Armourer of the Police Department or any other technical expert who is authorised to examine such goods and give opinion. Whether the goods described as S&B .25 Auto Pistol cartridges, in the Bill of Entry are the same as S&B 7.65 pistol cartridges, as found on physical examination of the imported goods? - Held that - the controversy can be decided by getting a sample of the imported cartridges with 7.65 bore goods examined and certified by a competent authority such as the Armourer of the Police Department. Appeal allowed by way of remand.

Summary

Issues:
1. Interpretation of import licence for gun cartridges
2. Reliance on certificate from Authorised Armourer of Police Department
3. Discrepancy in imported goods description
4. Legal validity of imported goods

Issue 1: Interpretation of import licence for gun cartridges
The appeal concerned gun cartridges imported by two entities, where the dispute revolved around whether the imported cartridges were covered by the import licence. The original adjudicating authority held that the cartridges were not covered, leading to confiscation and penalties. However, the Commissioner (Appeals) allowed the appeals, stating that the imported cartridges were usable in both rifles and revolvers, thus not constituting prohibited goods. The Commissioner relied on expert certificates and legal provisions to support this interpretation.

Issue 2: Reliance on certificate from Authorised Armourer of Police Department
The Commissioner (Appeals) relied on a certificate from the Authorised Armourer of the Police Department to determine the usability of the imported cartridges in rifles and revolvers. The Revenue challenged this reliance, arguing that no samples from the imported consignment were examined by the Armourer, questioning the validity of the certificate. The Tribunal emphasized the need for expert examination of samples to conclusively determine the compatibility of the imported cartridges with the import licence.

Issue 3: Discrepancy in imported goods description
Another aspect of the case involved discrepancies in the description of the imported goods, where goods declared as ".25 Auto Pistol cartridges" were found to be ".25 Auto Pistol cartridges" on examination. The Commissioner (Appeals) interpreted the metric system bore measurement to justify the import, citing legal precedents. The Tribunal highlighted the need for expert examination and certification to resolve the discrepancy conclusively.

Issue 4: Legal validity of imported goods
Considering the conflicting interpretations and discrepancies, the Tribunal set aside the impugned order and remanded the case to the original adjudicating authority. The authority was directed to obtain samples of the imported cartridges for expert opinion, ensuring a fair hearing for all parties involved. The decision emphasized the importance of technical expertise in determining the legality of imported goods, allowing for additional evidence to be admitted as per legal procedures.

In conclusion, the judgment addressed complex issues surrounding the interpretation of import licences, reliance on expert certificates, discrepancies in goods descriptions, and the legal validity of imported goods, emphasizing the necessity of expert examination and fair adjudication in customs matters.