2014 (1) TMI 1575 - AT - Customs

Confiscation of goods - Import of Vanaspati ghee - Imported Goods not as Prevention of Food Adulteration Act (PFA) Rules - Penalty u/s 114A - Held that - Commissioner has allowed re-export without any redemption fine. Inasmuch as the Revenue has not appealed against the said part of the impugned order, the re-export without any fine is confirmed. It already stands observed by the Tribunal that there was no mala fide on the part of the importer and it was only a question of samples having failed as regards PFA standards - Following decision of assessee s own previous case 2011 (8) TMI 718 - CESTAT, DELHI - Decided in favour of assessee.

Summary

Issues:
1. Import of hydrogenated vegetable oil not conforming to standards under PFA Rules, 1955.
2. Confiscation of goods and imposition of penalty under Section 114A of the Act.
3. Redemption fine and penalty imposed by the Commissioner of Customs.
4. Tribunal's previous ruling on a similar issue of the same appellant.
5. Re-export of goods without any redemption fine.

Analysis:

1. The appellant imported hydrogenated vegetable oil from Sri Lanka, which upon testing was found not conforming to the standards under PFA Rules, 1955 due to a higher melting point in some samples. This non-conformity led to the initiation of proceedings for confiscation of the goods.

2. The Commissioner of Customs, New Delhi, allowed the appellant to re-export the non-conforming goods without any redemption fine but imposed a penalty of Rs. 18,10,851/- equivalent to the duty amount involved under Section 114A of the Act.

3. The Tribunal considered a similar issue of the same appellant in the past, where it was observed that confiscation of goods not conforming to standards was justified under section 111(d) of the Act. However, the Tribunal reduced the redemption fine, considering no role attributed to the importer.

4. In the present case, the Commissioner allowed re-export without any redemption fine, which was not appealed by the Revenue. The Tribunal, following its earlier decision, set aside the penalty imposed on the appellant due to the absence of mala fide intentions and the failure of samples to meet PFA standards.

5. The Tribunal confirmed the re-export without any fine, emphasizing that there was no mala fide on the part of the importer and the penalty was unjustified. The appeal was disposed of accordingly, setting aside the penalty imposed on the appellant.

This judgment highlights the importance of adherence to standards in importation, the discretion of authorities in imposing fines and penalties, and the significance of previous rulings in determining outcomes of similar cases.