2008 (9) TMI 362 - AT - Customs

PSI certification import of scrap - we find that the PSI certification is a legal requirement which has been imposed by the Government in the public interest to curb importation of bombs, explosives etc. in the consignment of scrap - the requirement of the beneficial policy cannot be taken lightly or waived. - we find that the Appellants have taken the necessary steps to obtain the PSI certificate as required under the law and it was beyond their control that the said certificate could not be obtained. We also take into account of the fact that on 100% examination, nothing objectionable was found in the consignment of the Appellants. Hence, while upholding the confiscation, we reduce the Redemption Fine and waive the penalty. The Appeal is thus partly allowed.

Summary

Issues:
Import of scrap without PSI certificate under EXIM Policy post-amendment.

Analysis:
The Appellants imported scrap from China, requiring pre-shipment inspection under the amended EXIM Policy. The Appellants placed the order before the amendment, but China lacked a PSI Agency, hindering certification before importation. Despite a thorough post-import examination revealing no issues, the absence of a valid PSI certificate led to confiscation and penal action as per the law.

The Tribunal acknowledged the importance of PSI certification in preventing dangerous items in scrap imports. While recognizing the Appellants' efforts to obtain the certificate and the lack of control over its unavailability, the Tribunal upheld the confiscation but reduced the Redemption Fine to Rs. 1.00 lakh. Considering the absence of any objectionable findings in the consignment and the Appellants' proactive steps, the penalty imposed was waived, partially allowing the appeal.

In conclusion, the judgment highlights the legal requirement of PSI certification for scrap imports post-amendment under the EXIM Policy. It emphasizes the necessity of adhering to such requirements for public safety, even if circumstances beyond the importer's control hinder compliance. The decision balances enforcement with mitigating factors, reducing the fine and waiving the penalty based on the Appellants' actions and the examination results.