2009 (1) TMI 253 - AT - Customs

100% EOU import of Nickel Chloride Crystals, Boric Acid and Copper Sulphate exemption notification no. 52/2003 restriction in import held that - Import of goods into India is regulated by the EXIM Policy in force at the time of import. As per the clarification issued by the CBEC in F. No. 528/9/2004-Cus (TU) dt. 6-10-2006, import of insecticides is restricted. Import of Boric Acid requires a certificate of registration/import permit from the CIB & R.C - import of insecticides for non-insecticidal use is not subject to the restrictions contained in that Act - , the confiscation of Boric Acid is sustained. Confiscation of Nickel Chloride and Copper Sulphate as well as the penalty imposed are set aside. Appropriate penalty shall be decided afresh considering the fact that only Boric Acid is liable for confiscation under Section 111(d) of the Act

Summary

Issues:
Import of Boric Acid without required permits, Confiscation of goods, Applicability of Insecticides Act, Penalty imposition, Interpretation of relevant legal provisions.

Analysis:

1. Import of Boric Acid without required permits:
M/s. Synergies Castings Ltd. (SCL) imported Boric Acid without the necessary registration certificate or import permit from the Central Insecticide Board & Registration Committee (CIB & RC). The Additional Commissioner of Customs found this import to be in contravention of the Insecticides Act, leading to the confiscation of the Boric Acid under Section 111(d) of the Customs Act, 1962.

2. Confiscation of goods:
The original authority confiscated the consignment of Nickel Chloride, Boric Acid, and Copper Sulphate under Section 111(d) of the Act due to the lack of required permits for import. The impugned order affirmed this decision, citing compliance with CBEC's Circulars.

3. Applicability of Insecticides Act:
The Insecticides Act, 1968, mandates that any import of insecticides requires a registration certificate or permit from the CIB & RC. The Tribunal deliberated on whether the imported goods were intended for insecticidal use or for other purposes, such as in the manufacturing process of automobile wheels, to determine the applicability of the Act.

4. Penalty imposition:
A penalty of Rs. 15,000/- was imposed on SCL under Section 112(a) of the Act for the import of goods without the necessary permits. The Tribunal reviewed the imposition of this penalty in light of the nature of the imported goods and the legal requirements under the Insecticides Act.

5. Interpretation of relevant legal provisions:
The Tribunal considered Section 38 of the Insecticides Act, which exempts certain substances from the Act's provisions if intended for non-insecticidal purposes. It was argued that Boric Acid, Nickel Chloride, and Copper Sulphate were imported for use in the manufacturing process of automobile wheels, not as insecticides, thus not requiring the registration certificate or import permit.

In conclusion, the Tribunal allowed the appeal by way of remand, sustaining the confiscation of Boric Acid but setting aside the confiscation of Nickel Chloride and Copper Sulphate. The penalty imposition was to be reconsidered, taking into account that only Boric Acid was liable for confiscation under the Act. The decision highlighted the importance of complying with import regulations and the specific legal requirements for different types of goods under relevant statutes.