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2020 (5) TMI 227 - AT - CustomsConfiscation of goods - imposition of redemption fine - redemption fine imposed on the ground that the appellant have not complied with the requirement of Stainless Steel Products (Quality Control) Order, 2016 in as much as the appellant is required to affix the BIS Mark on the imported goods at the time of shipment - HELD THAT - This case there is no dispute between assessee and the revenue. Admittedly the goods were shipped in the month of January, 2017. At that point of time Stainless Steel Products (Quality Control) Order, 2016 had not come into force, same came into force on 07.02.2017 only. In terms of the Para 2.17 of the Foreign Trade Policy,2015-2020 the date of import has to be reckoned, as per the date of shipment/dispatch from the supplying country. The date of shipment that is Bill of Lading which is in month of January, 2017, the Stainless Steel Products (Quality Control) Order, 2016 was not in force, therefore the appellant was not required to affix BIS Mark on the product imported by them. The contention of the Lower Authority as well as the submission made by Learned Authorized Representative that since the appellant was having knowledge about Stainless Steel Products (Quality Control) Order, 2016 at the time of dispatch of the goods from supplying country they should have affix the BIS Mark is of no basis - it is surprising how the Lower Authority has given such finding particularly when the order was not having legal backing to enforce such order in 2016. Appeal allowed - decided in favor of appellant.
Issues:
- Import of Cold Rolled Stainless Steel Coil - Requirement of affixing BIS Mark as per Stainless Steel Products (Quality Control) Order, 2016 - Confiscation of goods and imposition of redemption fine - Appeal before Commissioner (Appeals) and subsequent appeal before the Tribunal Analysis: 1. Import of Cold Rolled Stainless Steel Coil: The appellant imported Cold Rolled Stainless Steel Coil. The Adjudicating Authority confiscated the goods and imposed a redemption fine due to non-compliance with the requirement of the Stainless Steel Products (Quality Control) Order, 2016, which mandated affixing the BIS Mark on imported goods at the time of shipment. 2. Requirement of affixing BIS Mark: The appellant contended that at the time of shipment in January 2017, the Stainless Steel Products (Quality Control) Order, 2016 was not in force, as it came into effect on 07.02.2017. The appellant argued that as per the Foreign Trade Policy, the date of import is determined based on the shipment date from the supplying country, not the arrival date at an Indian port. Therefore, the requirement to affix the BIS Mark was not applicable during the shipment. 3. Confiscation and Appeal: The Commissioner (Appeals) upheld the Adjudicating Authority's decision, leading the appellant to file the present appeal. The appellant's counsel cited previous judgments to support their argument that the goods were wrongly confiscated due to the absence of a requirement to affix BIS Marks at the time of shipment. 4. Tribunal's Decision: Upon hearing both sides and examining the records, the Tribunal found no dispute regarding the facts of the case. It noted that the Stainless Steel Products (Quality Control) Order, 2016 was not in force during the shipment in January 2017. The Tribunal emphasized that the date of import should be reckoned based on the shipment date from the supplying country. Therefore, the appellant was not obligated to affix the BIS Mark on the imported product. The Tribunal criticized the Lower Authority's finding and the Revenue's argument that the appellant should have complied with the order, as it was not legally enforceable in 2016. Consequently, the Tribunal set aside the impugned orders and allowed the appeals. In conclusion, the Tribunal ruled in favor of the appellant, overturning the confiscation of goods and redemption fine based on the absence of a legal requirement to affix the BIS Mark at the time of shipment in January 2017, before the enforcement of the Stainless Steel Products (Quality Control) Order, 2016.
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