2018 (5) TMI 1069 - AT - Customs

Import of Hazardous goods - old and used picture tubes - Absolute Confiscation - penalty. Held that - Picture tubes being the Cathode Ray Tubes can well be categorized under the MoEF Rules as hazardous waste. It, therefore, stands established on record that the description of the goods imported is misdeclared and once these are proved to be old and used goods, their import is restricted export in accordance with the provisions of FTP, ITC and the permission of MoEF as in the present case - The appellant importer could not produce any such compliance or permission, nor could produce any license for the import of the subject goods. The goods have been opined by the MoEF as hazardous e-waste, and such goods have rightly been held as prohibited goods u/s 110 of the Customs Act, and as such, there seems no infirmity or illegality in ordering the absolute confiscation of the said goods. Penalty - Held that - fines and penalties imposed by the original authorities, unless and until there is any aberrant reason to observe element of unreasonableness or arbitrariness may not the inferred with - Rather, the Commissioner (Appeals) has reduced the penalty imposed upon the appellant to a great extent. There is no statutory restriction also that the penalty should not be reduced by the appellant authority. In the totality of the above observations, there is no infirmity or illegality in the order of Commissioner, Customs (Appeals) under challenged - penalty upheld. Appeal dismissed - decided against appellant.

Issues:
1. Import of old and used picture tubes without proper declaration.
2. Confiscation of goods under Section 111 of the Customs Act.
3. Imposition of penalty under Section 112 of the Customs Act.
4. Compliance with Hazardous Wastes Rules and Ministry of Environment and Forests regulations.
5. Appeal against the order of Commissioner of Customs (Appeal) dated 17.06.2013.

Issue 1: Import of old and used picture tubes without proper declaration:
The appellant imported picture tubes declared as new but found to be old and used upon examination. A chartered engineer confirmed their condition, and the Ministry of Environment and Forests (MoEF) advised that without permission, importing such goods is illegal. The appellant claimed the old stock was loaded inadvertently, but this was seen as a strategy to misdeclare the goods. The Commissioner of Customs (Appeal) upheld the confiscation of the goods and imposed a penalty under Section 112 of the Customs Act.

Issue 2: Confiscation of goods under Section 111 of the Customs Act:
The Commissioner (Appeals) ordered the absolute confiscation of the goods valued at a specific amount due to the misdeclaration and import of old and used picture tubes, which were considered hazardous e-waste. The appellant failed to provide evidence to refute the findings, leading to the confiscation under Section 111 of the Customs Act.

Issue 3: Imposition of penalty under Section 112 of the Customs Act:
The penalty was imposed on the appellant for misdeclaration and importing prohibited goods without necessary permissions. The Commissioner (Appeals) reduced the penalty but upheld its imposition under Section 112(A) of the Act, warning the appellant against future imports of e-waste.

Issue 4: Compliance with Hazardous Wastes Rules and Ministry of Environment and Forests regulations:
The case involved a violation of Hazardous Wastes (Management, Handling, and Trans-boundary Movement) Rules, 2008, as the imported picture tubes were deemed hazardous e-waste. The appellant failed to obtain the required permissions from the MoEF, leading to the confiscation of goods and imposition of penalties as per the regulations.

Issue 5: Appeal against the order of Commissioner of Customs (Appeal) dated 17.06.2013:
The appellant challenged the order of the Commissioner (Appeals) citing misapplication of circulars and arguing against the categorization of the goods as e-waste. The Tribunal upheld the Commissioner's decision, emphasizing the misdeclaration and non-compliance with regulations, leading to the confiscation and penalties imposed.

This judgment addresses the import of old and used picture tubes without proper declaration, resulting in the confiscation of goods under Section 111 of the Customs Act and the imposition of penalties under Section 112. The case highlights the importance of compliance with Hazardous Wastes Rules and Ministry of Environment and Forests regulations to avoid illegal imports of hazardous e-waste. The Tribunal upheld the Commissioner's decision, emphasizing the need for accurate declarations and permissions for importing restricted goods, warning against future violations.

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