1989 (11) TMI 199 - AT - Customs

Summary

Issues:
Confiscation of imported goods, redemption fine, penalty under Customs Act, validity of import of poppy seeds under OGL, interpretation of Import Policy, past practice of releasing imported goods without penal action.

Confiscation of Imported Goods and Redemption Fine:
The appellants, manufacturers of Ayurvedic and Unani medicines, imported poppy seeds valued at Rs. 1,54,000 under OGL but failed to produce a valid Import Licence/CCP. The Collector ordered confiscation with an option to redeem on payment of a fine. The Tribunal held that import of consumer items of agricultural origin, like poppy seeds, was not permissible under OGL. The clarification by C.C.I. & E, New Delhi, stating the same was binding on Customs Authorities. The Tribunal rejected the argument that no Public Notice was issued, emphasizing the nature of imported goods over their intended use.

Penalty under Customs Act:
The appellants argued for leniency based on past practices of releasing similar goods without penalties. However, the Tribunal noted that the clear prohibition on importing poppy seeds was known to the appellants before shipment. Citing precedents, the Tribunal emphasized that the import's validity was not a matter of intended use but the nature of the goods. The Tribunal rejected the argument that the penalty was excessive, distinguishing it from a similar case where a lower fine was imposed due to different circumstances.

Conclusion:
The Tribunal upheld the Collector's decision, emphasizing the clear prohibition on importing poppy seeds under OGL due to their nature as consumer items of agricultural origin. The Tribunal rejected the appeal, affirming the confiscation of goods, redemption fine, and penalty under the Customs Act. The Tribunal highlighted the importance of adhering to import regulations and clarified that past practices of releasing goods without penalties did not apply in this case, given the clear prohibition on importing poppy seeds.