2012 (8) TMI 294 - AT - Customs

Goods reached from Pakistan to Amritsar by rail cargo - Notification No.48/2000-Cus. dated 25.4.2000 - import and export through a route other than sea port/ airport or Inland Container Depot or through a Land Custom Station - special order / permission of the commissioner - held that - Any goods reaching through different channel not known to customs authorities or that reaches India through different channel not permitted by the notification that calls for imposition of duty. Both sides agreed that the goods are not prohibited goods since that is covered by DFRC scheme. On such analogy levy of penalty is uncalled for. Therefore, confirming duty element, penalty is waived.

Summary

Issues:
Interpretation of Notification No. 48/2000-Cus. dated 25.4.2000 regarding duty on goods imported from Pakistan via rail cargo through Amritsar.

Analysis:
The appellant argued that the goods should not have been dutiable under the notification as they did not pass through the specified places. The Revenue confiscated the goods and imposed duty and penalties. The Commissioner waived the redemption fine but imposed a penalty. The appellant contended that their application for importation through Amritsar was rejected, and the procedural requirement of the notification should not deny them the benefit.

The Revenue argued that confiscation was warranted as the goods did not follow the proper route, justifying the duty and penalties imposed. The Tribunal examined Para 4 of the Notification No. 48/2000-Cus. dated 25.4.2000 and its proviso, which allowed import/export through routes other than those specified under certain conditions set by the Commissioner. The Tribunal emphasized that the proviso was mandatory, and the appellant failed to seek permission before the goods arrived in India.

The Tribunal concluded that the goods were not prohibited under the DFRC scheme and that Amritsar was a notified land custom station. Therefore, the appellant's appeal was partly allowed, confirming the duty element while waiving the penalty. The Revenue's appeal was dismissed, as the goods were permitted under the DFRC scheme and arrived at a notified station.

In summary, the Tribunal upheld the duty on the goods imported via rail cargo through Amritsar, citing the mandatory nature of the notification's proviso. The decision balanced the procedural requirements with the appellant's right to benefit from the notification, ultimately allowing the appeal in part and dismissing the Revenue's appeal.