2017 (9) TMI 539 - AT - Customs

Confiscation - Restricted item - import of brass scrap of the grade Elder - According to Revenue, the goods shall be restricted goods requiring licence formality. That not being complied, goods were liable to seizure and confiscation - Held that - when goods are declared to be of Elder specification and finding of the test laboratory is something else, unless the importer discards such import stating reason, he does not have say on valuation thereof since such goods are confiscable - Once a declaration is found to be false, the authority should totally confiscate the goods - The licence requirement if any is to be tested in the context of law in that behalf to ascertain whether such goods are restricted or prohibited. That aspect has not been examined - Adjudication order appears to have been passed superfluously without proper application of law. The order having suffered from the above legal infirmities and anomalies, that is remitted back to learned adjudicating authority to re-examine the issue - appeal allowed by way of remand.

Summary

Issues: Classification of imported goods under CTH, requirement of import license, validity of adjudication order

In this case, the appellant imported goods declared as brass scrap of the grade "Elder" covered by ISRI guidelines. The appellant classified the goods under CTH 74040022, relying on the ISRI classification. However, the Revenue contended that the goods should fall under CTH 74040029, a restricted category requiring an import license. The Revenue argued that non-compliance led to the goods being liable for seizure and confiscation. The appellant maintained that the goods met the "Elder" specification and did not require an import license. The testing laboratory's report indicated that the imported goods were actually bowls and plates made of copper and tin, not brass as declared. The adjudicating authority failed to examine the goods' specification, leading to legal discrepancies in the order.

The Tribunal found the adjudication order to be flawed and remitted the matter back to the authority for re-examination. The authority was directed to consider the tariff entry, ISRI specifications, and the physical characteristics of the goods. The necessity for an import license was to be determined in accordance with the law. The Tribunal emphasized the importance of a detailed and objective examination before reaching a conclusion on licensing requirements and implications under the Customs Act, 1962. The Tribunal stressed the need for a thorough re-evaluation to ensure a fair opportunity for the appellant and completion of the process by a specified date.

The Tribunal highlighted the significance of following natural justice principles during the re-adjudication process, including providing the appellant with the chance to address relevant evidence. The case was remanded for a fresh order, emphasizing the need for a meticulous analysis and adherence to legal procedures. The Tribunal aimed to rectify the legal flaws in the initial adjudication and ensure a fair and comprehensive review of the classification and licensing aspects concerning the imported goods.