2017 (4) TMI 1045 - AT - Customs

Whether prior to amendment on 4.12.2014 of steel and steel products (Quality Control Order) and CBEC Circular dtd.7.11.2014, when sales contract, invoices and B/L dates are prior to such amendment the provisions of steel and steel quality control order dated 4.12.2014 would apply? Held that - The Ministry of Steel vide its order No. SO 3065(E) dtd.4th December 2014 made applicable BIS registration to all the products described in relevant IS Standard numbers. Thus, it is only with effect from 4th December 2014, the product imported by the appellants came under restriction requiring BIS certification. It is not in dispute that the goods namely Prime Newly Produced Steel Deformed Bar covered under Customs Tariff Heading 72283019 covered under the subject two Bills of Entry both dtd. 12.12.2014 were supplied under commercial invoice dtd.18th September 2014 and the goods were shipped under Bill of Lading dtd. 12th September 2014 from Port in China. It is also not in dispute that the subject goods were shipped in terms of Contract No. GM2-LW 1407066-X dtd.7.7.2014 and in terms of Letter of Credit No.139514 FLCS0009 dtd.11.7.2014. Thus, it is also not in dispute that the goods were shipped prior to issuance of amendment order dtd.4.12.2014 by the Ministry of Steel inter alia requiring BIS registration the goods covered by ITC (HS) codes 72283029. In view of this, the goods imported by the appellants vide the subject two Bills of Entry did not require certification by BIS. The goods covered under Bills of Entry No 7681532 and 7681537 do not require certification of Bureau Indian Standards as CBEC Circular and Steel Quality Control Order dated 4.12.2014 cannot have retrospective effect. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Interpretation of Steel and Steel Products (Quality Control) Order, 2012; Applicability of CBEC Circular dated 7.11.2014; Retrospective effect of amendments to the order; Confiscation of goods under Customs Act, 1962; Imposition of fine and penalty.

Analysis:
The appeal challenged an Order-in-Appeal dated 17.10.2016 regarding the confiscation of goods imported under Bills of Entry for warehousing. The issue revolved around the applicability of the Steel and Steel Products (Quality Control) Order, 2012, especially after amendments made on 4.12.2014. The Central Government amended the order, requiring Bureau of Indian Standards (BIS) certification for certain steel products. The appellant argued that the amendment could not have retrospective effect, citing a High Court judgment. The Tribunal analyzed the timeline of events, including the issuance of CBEC Circular on 7.11.2014 and the subsequent amendment by the Ministry of Steel on 4.12.2014.

The Tribunal examined the relevant provisions of the Steel Quality Control Order and the CBEC Circular. It noted that the goods in question, Prime Newly Produced Steel Deformed Bars, were imported before the amendment requiring BIS certification came into effect. The Tribunal referred to the High Court judgment cited by the appellant, emphasizing that the clarification and amendment should not be applied retrospectively. The Tribunal also highlighted the specific dates of the sales contract, invoice, and Bill of Lading, which were all before the amendment, supporting the appellant's argument against the retrospective application.

Moreover, the Tribunal considered the arguments presented by both parties regarding the reliance on the CBEC Circular versus the ITC (HS) codes. It emphasized that the real issue was whether the Steel Quality Control Order, as amended, applied to goods imported before the said amendment. The Tribunal analyzed the legislative history and the specific products covered under the order, ultimately concluding that the goods in question did not require BIS certification as per the amended order.

In conclusion, the Tribunal held that the confiscation and penalty imposed on the appellant were unwarranted. It allowed the appeal, providing relief to the appellant concerning the confiscation of goods imported under the Bills of Entry. The judgment emphasized the non-retrospective application of the amendment to the Steel and Steel Products (Quality Control) Order, 2012, in determining the BIS certification requirement for the imported goods.

Conclusion:
The Tribunal ruled in favor of the appellant, determining that the goods did not require BIS certification as per the amended Steel Quality Control Order. The judgment highlighted the importance of the timeline of events and the non-retrospective application of amendments in interpreting legal provisions related to the import of steel products.