2023 (7) TMI 69 - AT - Customs

Classification of imported goods - Mosquito killer racket - prohibited goods as per DGFT Notification No.02/2015-20 dated 26.04.2021 or not - to be under CTH 85167920 (Electrical or electronics devices for repelling insects) or under CTH 85169000 (Parts)? - HELD THAT - In the case cited by the appellant M/S. NAKSHATRA IMPEX, M/S. NAVYA ENTERPRISE AND M/S. BALAJI IMPEX VERSUS COMMISSIONER OF CUSTOMS (PORT) , KOLKATA 2023 (2) TMI 491 - CESTAT KOLKATA , it is recorded by this Tribunal that the goods were ordered for shipment on 09.04.2021 and the goods was shipped on 26.04.2021 and on the said date, the DGFT prohibited for import of the impugned goods. In that circumstances, this Tribunal held that as the goods were already shipped on 26.04.2021. Therefore, this Tribunal held that the restrict made by the DGFT Notification No.02/2015-20 dated 26.04.2021 was not applicable to the facts and circumstances in the said case. In the case in hand, the import itself has taken place on 09.04.2022, which is much after DGFT Notification No.02/2015-20 dated 26.04.2021. Therefore, the reliance made by the appellant on the decision in the case of M/s Nakshatra Impex is not applicable in the facts and circumstances of this case. There are no merit in the impugned appeal - appeal dismissed.

Summary

Issues:
The issues involved in the judgment are misdeclaration of imported goods, classification under Customs Tariff Heading (CTH), applicability of DGFT Notification, absolute confiscation, and imposition of penalty.

Misdeclaration of Imported Goods:
The appellant filed a Bill of Entry for clearance of goods declared as "Spare of Mosquito Bat" but upon examination, it was found that the imported goods were actually Mosquito Bat in Completely Knocked Down (CKD) condition. The Revenue sought classification under CTH 85167920 instead of the declared CTH 85169000.

Applicability of DGFT Notification:
The DGFT Notification No.02/2015-20 dated 26.04.2021 prohibits the import of Mosquito killer racket if the CIF value is below a certain threshold. The total CIF invoice value of the imported goods was below this threshold, indicating a possible violation of the DGFT Notification.

Absolute Confiscation and Penalty:
A show-cause notice was issued to the appellant, and after adjudication, it was determined that the goods were liable for absolute confiscation. Additionally, a penalty of Rs.2.10 lakhs was imposed on the appellant, which was upheld by the ld.Commissioner (Appeals).

In the appeal, the appellant relied on a previous Tribunal order in the case of Nakshatra Impex, where import of similar goods was allowed based on different circumstances regarding the applicability of the DGFT Notification. However, the Tribunal in the present case noted that the import took place after the date mentioned in the DGFT Notification, making the reliance on the previous order inapplicable. Consequently, the Tribunal upheld the impugned order, dismissing the appeal filed by the appellant.