2018 (7) TMI 1801 - AT - Customs

Requirement of permission of MOEF - Hazardous Waste - imported Old and Used Tyres - restricted item - Confiscation - penalties - Held that - Hon ble High Court in the case of COMMISSIONER OF CUSTOMS NOIDA VERSUS M/S JIBRAN OVERSEAS 2016 (12) TMI 1032 - ALLAHABAD HIGH COURT held that the Tribunal s finding that the imported old and used tyres which are capable of being used was not hit by the mischief of hazardous waste and would not be defined as hazardous waste and, therefore, their importer did not require the permission of MOEF - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Import of "Old and Used Tyres"
2. Enhancement of CIF value
3. Confiscation under Customs Act
4. Imposition of redemption fine and penalty
5. Requirement of specific import license
6. Appeal against Orders-in-Appeal
7. Grounds of appeal regarding hazardous waste classification

Analysis:

Issue 1: Import of "Old and Used Tyres"
In Appeal No. C/59922/2013, the appellant imported 'Old and Used Tyres' without a specific import license. The Original Authority enhanced the CIF value of the goods and confiscated them under Sections 111(d) and 111(m) of the Customs Act, 1962. A redemption fine and penalty were imposed. The Commissioner (Appeals) upheld the Original Authority's decision. The Tribunal, considering past rulings, reduced the redemption fine and penalty based on re-determined value, following precedents set in similar cases.

Issue 2: Enhancement of CIF value
The Original Authority enhanced the CIF value of the imported goods under Rule 9 of Customs Valuation Rules, 2007. The Tribunal, in line with previous decisions, modified the redemption fine and penalty based on the re-determined value, reducing the financial burden on the appellant.

Issue 3: Confiscation under Customs Act
The imported 'Old and Used Tyres' were confiscated under Sections 111(d) and 111(m) of the Customs Act, 1962 due to the absence of a specific import license. The Tribunal modified the impugned order, reducing the redemption fine and penalty based on precedents and re-determined value.

Issue 4: Imposition of redemption fine and penalty
The Original Authority imposed a redemption fine and penalty on the appellant. The Tribunal, following past rulings and considering the re-determined value, reduced the redemption fine and penalty to 15% and 10%, respectively, of the re-determined value.

Issue 5: Requirement of specific import license
The requirement of a specific import license for importing 'Old and Used Tyres' was highlighted in the case. The absence of such a license led to the confiscation of the goods under the Customs Act, 1962.

Issue 6: Appeal against Orders-in-Appeal
The appellant filed an appeal before the Tribunal against the Orders-in-Appeal issued by the Commissioner (Appeals), seeking a modification of the redemption fine and penalty imposed by the Original Authority.

Issue 7: Grounds of appeal regarding hazardous waste classification
In Appeal Nos. C/51586 & 51588/2014, the Revenue appealed against the Orders-in-Appeal regarding the importation of 'Old and Used Tyres' classified as hazardous waste. The Tribunal, citing a ruling by the Hon'ble Allahabad High Court, dismissed the appeals, stating that the imported tyres did not fall under the hazardous waste category and did not require permission from the Ministry of Environment.

This comprehensive analysis outlines the key issues, decisions, and legal considerations addressed in the judgment related to the import of 'Old and Used Tyres' as adjudicated by the Appellate Tribunal CESTAT ALLAHABAD.