2018 (6) TMI 943 - AT - Customs

Import of restricted item - Stainless Steel Pipes Grade - appellant has submitted that the restriction were imposed during the period 21.11.2008 to 16.01.2009 as per which the goods were to be imported under import license; that in respect of goods which were though imported during the period of restriction, but the Bills of Entry was filed after 16.01.2009, the clearance was allowed without license. Held that - Certainly the Appellant is at loss since the restriction was not applicable in case of consignments which though imported during restricted period but in respect of which Bills of Entry were not filed till 16.01.2009, such importers were eligible to import the impugned goods freely - the importers like Appellants who imported the goods during restricted period and also filed Bills of Entry during such period had to suffer the confiscation, redemption fine and penalties. The Appellant cannot be found faulted with. Quantum of redemption fine and penalty reduced - appeal allowed in part.

Summary

Issues:
Import of restricted goods without proper license leading to confiscation, redemption fine, and penalty.

Analysis:
The case involved the import of Stainless Steel Pipes Grade falling under the restricted category without the required license, resulting in confiscation, redemption fine, and penalty. The appellant imported the goods during the restricted period but filed the Bills of Entry after the restriction was lifted. The appellant argued that had they waited to file the Bills of Entry, the goods would have been cleared without any issue. The Tribunal acknowledged that importers who did not file Bills of Entry till a certain date were eligible to import the goods freely, unlike the appellant who filed the Bills during the restricted period, leading to confiscation. The Tribunal found the appellant not at fault and reduced the redemption fine to ?50,000 and penalty to ?15,000, considering the circumstances of the case.

The Tribunal considered the timing of filing Bills of Entry crucial in determining the applicability of restrictions on the import of goods. Importers who filed Bills after a specific date were not subject to the restrictions, unlike those who filed during the restricted period. The Tribunal recognized the unfairness faced by the appellant due to the timing of filing and adjusted the redemption fine and penalty accordingly. This decision highlights the importance of compliance with import regulations and the potential consequences of not adhering to the specified procedures, even if the goods were imported during a restricted period but the necessary documentation was not completed on time.

In conclusion, the Tribunal partly allowed the appeal by modifying the impugned order to reduce the redemption fine and penalty imposed on the appellant. The judgment serves as a reminder of the significance of timely compliance with import regulations to avoid penalties and confiscation of goods, emphasizing the need for importers to adhere to the prescribed procedures to prevent legal complications and financial losses.