2006 (5) TMI 29 - AT - Customs

Customs Melting Steel Scrap (Non-Shredded) Import of restricted goods was not deliberate as goods were handed over to the shipping line prior to issuance of Public Notice and thereafter, the things were beyond the control of appellant Confiscation and penalty set aside

Summary

Issues Involved:
- Appeal against confiscation and penalty imposed on imported goods due to violation of a Public Notice.

Detailed Analysis:

Issue 1: Confiscation of Goods
The appellant imported Heavy Melting Steel Scrap (Non-Shredded) from Bandar Abbas Port and filed a Bill of Entry on 06.10.2005. The goods were confiscated based on a Public Notice dated 19.9.2005 prohibiting such imports. The appellant argued that the goods were shipped on 20.9.2005, a day after the Public Notice, and were handed over to the shipping line before the Notice was issued. The Commissioner acknowledged that the goods were shipped after the Notice and beyond the appellant's control. It was noted that there was no deliberate intention to violate the prohibition, leading to the conclusion that the confiscation was not justified.

Issue 2: Imposition of Personal Penalty
The Commissioner held that the appellant's contention regarding the timing of the shipment in relation to the Public Notice was genuine. Therefore, the confiscation and penalty were not sustainable. The Revenue contended that the goods were imported in violation of the Public Notice and were thus liable for confiscation. However, the Tribunal found that the appellant had no malafide intention to breach the prohibition and that the import was not deliberate. Consequently, the order confiscating the goods and imposing a penalty was set aside, and the appeal was allowed.

In conclusion, the Tribunal ruled in favor of the appellant, overturning the decision of the Commissioner of Customs. The judgment emphasized the lack of malicious intent on the part of the appellant in importing the goods, ultimately leading to the reversal of the confiscation and penalty imposed.