2016 (3) TMI 63 - AT - Customs

Payment of Redemption fine and penalty- Import of Old and Used Tyres- Revenue contended that the import of old and used tyres is restricted under Exim Code 40122020 of ITC(HS) Classification 2009-2014 and therefore requires a valid import license issued by Directorate General of Foreign Trade, New Delhi; and that as old and used tyres are covered by B-3140 of Part-B of Schedule III of the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008 (for short, referred to as the Rules, 2008 , the importer requires permission from Ministry of Environment and Forest (MoEF). Held that MOEF permission required for clearance of the consignments of old and used tyres are not legally sustainable, and thus, allowable for redemption of imported consignment on payment of redemption fine of 15% on the declared value and the quantum of penalty reduced to ₹ 30,000/- in the interest of justice. Decision in the case of Jibran Overseas 2015 (11) TMI 1020 - CESTAT NEW DELHI followed. - Decided in favour of appellant

Summary

Issues:
Import of old and used tyres without required permissions and clearances.

Analysis:
The Appellant imported a consignment of "Old and Used Tyres" without the necessary import license and permission from the Directorate General of Foreign Trade, New Delhi, as required under Exim Code 40122020 of ITC(HS) Classification 2009-2014. The Customs Department withheld clearance of the consignment, initiating proceedings against the Appellant under the Hazardous Wastes Rules, 2008. The adjudication order dated 31.12.2014 ordered confiscation of goods under Section 111(d) and 111(o) of the Act, with an option for redemption on payment of a fine. The ld. Commissioner (Appeals) upheld this order, leading the Appellant to appeal before the Tribunal.

The Ld. Advocate for the Appellant argued that MOEF permission was not required for clearance of old and used tyres, citing a previous Tribunal decision. The Appellant agreed to pay the redemption fine and penalty at a reduced rate. On the other hand, the Ld. DR for the Respondent supported the findings in the impugned order.

The Tribunal, after hearing both sides, referred to a previous decision in the case of Jibran Overseas, where it was held that MOEF permission was not necessary for clearance of old and used tyres. Following this precedent, the Tribunal allowed redemption of the imported consignment on payment of a fine of 15% of the declared value and reduced the penalty to Rs. 30,000 considering the circumstances of the case.

In conclusion, the Tribunal found that the lower authorities' requirement of MOEF permission for clearance of old and used tyres was not legally sustainable. The appeal was disposed of with the consignment allowed for redemption on payment of the specified fine and reduced penalty, in line with the precedent set in the case of Jibran Overseas.