1997 (8) TMI 164 - AT - Customs

Summary

Issues:
1. Validity of import licenses and date of actual shipment.
2. Confiscation of goods under Section 111 of the Customs Act, 1962.
3. Redemption fine and penalty imposed on the importers.
4. Interpretation of Para 82 and Para 86 of the Handbook of Procedures.
5. Comparison with previous judgments on determining the date of export.

Issue 1: Validity of import licenses and date of actual shipment
The case involved the import of cold rolled stainless steel strips under the DEEC Scheme. The Customs authorities questioned the validity of the import licenses as the goods arrived after the licenses had expired. The Tribunal emphasized that the date of actual shipment, not the date of arrival at an Indian port, determines the validity of import licenses. Referring to Para 86 of the Handbook of Procedures, the Tribunal held that the goods were not covered by valid licenses and were rightfully confiscated.

Issue 2: Confiscation of goods under Section 111 of the Customs Act, 1962
The Adjudicating authority confiscated the goods under Section 111(d) of the Customs Act, 1962, for being liable to confiscation under Section 3 of the Imports and Exports (Control) Act, 1947. The authority allowed the option of redeeming the goods on payment of a fine. The Tribunal upheld the confiscation, emphasizing the importance of the actual shipment date for determining the validity of import licenses.

Issue 3: Redemption fine and penalty imposed on the importers
The Adjudicating authority imposed a redemption fine and a penalty on the importers. The Tribunal found the redemption fine excessive and reduced it. The penalty was upheld as the Bill of lading was deemed to be pre-dated to benefit the DEEC holder. The importers failed to establish the actual shipment date, leading to the confirmation of the penalty.

Issue 4: Interpretation of Para 82 and Para 86 of the Handbook of Procedures
The Tribunal clarified that Para 86, which determines the validity of import licenses based on the date of actual shipment, must be read in conjunction with Para 82. The Tribunal highlighted that a shipped Bill of lading should reflect the actual date of shipment, not the date of arrival at an Indian port.

Issue 5: Comparison with previous judgments on determining the date of export
The Tribunal distinguished the case from previous judgments by emphasizing the importance of the date of actual shipment over the date of arrival at an Indian port. The Tribunal referenced a previous case to support its decision that the validity of the license is determined by the date of actual shipment.

In conclusion, the Tribunal upheld the confiscation of goods, reduced the redemption fine, and confirmed the penalty imposed on the importers based on the discrepancies in the Bill of lading and the expiration of the import licenses before the actual shipment date.