9911796707
|
Home
Issues:
1. Confiscation of consignments of styrene Monomer 2. Interpretation of import licence provisions regarding end-products 3. Compliance with industrial licence or certificate of registration 4. Authority of Customs in relation to import licence specifications Analysis: The appeal concerns the confiscation of two consignments of styrene Monomer, imported by the appellants for use by M/s. Vipul Dyes & Chemicals. The issue arises from the discrepancy in the import licence, which mentions 'dyes & dye intermediates' as the end-product but does not specify 'pigment binder,' the actual product for which the Monomer was intended. The order-in-original allowed redemption on payment of fines but faced objection due to the mismatch between the imported item and the end-product specified in the licence. The appellant's consultant argued that the Monomer is used in pigment binders, supported by a valid registration certificate from the Directorate of Industries. Referring to the Import Export Policy, it was contended that the import of items should align with the manufacturing activities authorized by the industrial licence or registration certificate. On the other hand, the JDR contended that since the import licence did not mention 'pigment binder' as the end-product, importing Monomers for binder production was not permissible. Upon deliberation, the Tribunal observed that Policy provisions allow the import of goods required for manufacturing final products specified in the industrial licence or registration certificate. The licensing authority's omission in endorsing the activity related to pigment binder, despite being endorsed in the registration certificate earlier, was noted. It was emphasized that Customs authorities cannot exceed the licence specifications and insert unmentioned items. Consequently, as 'pigment binder' was not included in the import licence, the imported Monomer could not be considered a permitted raw material, justifying the order of confiscation. However, recognizing the technical nature of the infringement and the circumstances, the Tribunal decided to show leniency. The redemption fines were significantly reduced from Rs. 2,60,000 to Rs. 25,000 and from Rs. 1,60,000 to Rs. 15,000, granting consequential relief to the appellants. The judgment underscores the importance of strict adherence to import licence provisions and the limitations of Customs authorities in extending beyond specified licence terms.
|
