1997 (4) TMI 210 - AT - Customs

Summary

Issues:
1. Whether the imported plastic bottles are considered consumer goods.
2. Whether the import of the plastic bottles required a specific Import Licence.
3. Whether the penalty imposed on the importers was justified under Section 112 of the Customs Act, 1962.

Analysis:
1. The appellants imported plastic bottles from Israel, claiming clearance under para 22 of Chapter V of the EXIM Policy 1992-1997. The Revenue contended that the bottles were consumer goods as they could directly satisfy human needs. The lower appellate authority accepted the Revenue's appeal and imposed a penalty of Rs. 1 lakh. The appellants argued that the bottles were not consumer goods as they were meant for fitting onto mineral water dispensers, not for direct consumer use. They further claimed that the bottles could not be refilled directly, thus not satisfying human needs directly. However, the description of the goods in a pamphlet indicated their use as carriers for ultra-pure mineral water, to be refilled and reused, falling within the definition of consumer durables.

2. The appellants argued that since the plastic bottles were not meant for direct consumer use and could not be refilled directly, they did not require an Import Licence. The Revenue maintained that the goods fell under the category of consumer durables, necessitating a specific Import Licence. The Tribunal held that the goods indeed fell within the definition of consumer goods, requiring a Licence for import. Despite the appellants' claim that the bottles could not be reused, there was no substantial evidence to support this assertion.

3. The Tribunal upheld the Collector (Appeals)'s decision to impose a penalty under Section 112 of the Customs Act, 1962, as the import of the plastic bottles required a Licence, which was not obtained by the importers. The Tribunal found no mala fide intent on the part of the importers but maintained that a Licence was necessary for the import. Consequently, the appeal against the penalty imposition was dismissed, affirming the decision of the lower appellate authority.

In conclusion, the Tribunal determined that the imported plastic bottles were indeed consumer goods, necessitating a specific Import Licence for their importation. The penalty imposed on the importers under Section 112 of the Customs Act, 1962, was upheld, as the import was found to be in violation of the licensing requirements.