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2019 (5) TMI 1081 - AT - CustomsImport of restricted item or not - shafts - import before the restrictions were placed - HELD THAT - It is a settled principle that goods are to be assessed in the way it is presented unless the contrary is established. Invoice copy annexed to the appeal indicates 4 varieties of shafts being imported from M/s CRYOSTAT S.A.S. France and it is not understood as to why all those 4 categories of shafts which appellant claims to have been parts of its centrifugal pumps were all classified as transmission shafts thus attracting policy restriction and why provision contained in para 1.5 of the Foreign Trade Policy cannot be pressed into services on the ground that shipment was done after the restriction was imposed. If shipment is made within original validity of irrevocable commercial letter of credit established before the date of imposition of such restriction of import/export then such export or import is permitted under FTP upto the time limit prescribed in such letter of credit. Both in classification and application of restriction for such imports during the validity of letter of credit the order of the Commissioner (Appeals) is unsustainable and the same is liable to be set aside - Appeal allowed - decided in favor of appellant.
Issues:
1. Classification of imported shafts under Customs Tariff Heading. 2. Confiscation of shafts as restricted items. 3. Application of Foreign Trade Policy provisions. 4. Validity of the order of the Commissioner of Customs (Appeals). Issue 1: The case involved the classification of imported shafts under Customs Tariff Heading 84.13. The appellant imported parts of a centrifugal pump, including shafts, which were classified by Customs Authorities under Tariff Heading No. 84831099. The Customs Authorities treated the shafts as transmission shafts, leading to their confiscation as restricted goods. The appellant contested this classification, arguing that the shafts were parts of centrifugal pumps and should be classified under a different heading. Issue 2: The order of confiscation of the shafts as restricted items was challenged in the appeal. The Commissioner of Customs (Appeals) upheld the confiscation but reduced the penalty amount. The appellant contended that the confiscation order was unjustified as the shafts were wrongly classified and that they possessed a valid letter of credit allowing the import within the specified period. Issue 3: The appellant invoked the provisions of para 1.5 of the Foreign Trade Policy, which allowed imports to proceed even if subjected to subsequent restrictions, provided the shipment was within the original validity of an irrevocable commercial letter of credit established before the imposition of the restriction. The appellant argued that the order of the Commissioner (Appeals) disregarded this provision, leading to an unsustainable decision. Issue 4: The Tribunal, after considering the submissions from both sides and examining the case record, found that the classification of the shafts as transmission shafts and the application of restrictions were erroneous. The Tribunal highlighted the provision in the Foreign Trade Policy, emphasizing that if the shipment was made within the original validity of the letter of credit established before the restriction, the import should be permitted. Consequently, the Tribunal allowed the appeal, setting aside the order of the Commissioner of Customs (Appeals) and providing consequential relief to the appellant. The judgment delivered by the Appellate Tribunal CESTAT MUMBAI, in this case, addressed the issues of classification, confiscation of restricted items, application of Foreign Trade Policy provisions, and the validity of the Commissioner of Customs (Appeals) order. The Tribunal ruled in favor of the appellant, emphasizing the incorrect classification of the shafts, the misapplication of restrictions, and the failure to consider the Foreign Trade Policy provisions. The decision highlighted the importance of adhering to proper classification principles and relevant trade policy regulations in customs matters.
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