2016 (12) TMI 1032 - HC - Customs

Classification of imported goods - old and used tyres - hazardous goods or not - whether the tyres imported by the assessee would have to have permission of MOEF for import into the country under Entry B3140? - Held that - The Tribunal has recorded a clear finding with regard to the item, which is sought to be imported by the assessee that it is not a waste tyre rather it is a re-usable tyre, which falls within the exclusion clause of the entry. The Tribunal, therefore, has rightly come to the conclusion that the imported goods were not hit by the mischief of hazardous waste and could not be defined as hazardous waste and, therefore, their import did not require the permission of the MOEF - re-usable tyres falls within the exclusion clause of the entry - appeal allowed in favor of appellant-assessee.

Summary

Issues:
1. Interpretation of Customs Act, 1962 regarding import of goods declared as old and used tyres.
2. Determination of whether imported goods are hazardous waste requiring permission of the MOEF.
3. Consideration of Tribunal's decision based on information provided by the party.

Analysis:
1. The case involved a customs appeal filed by the department under Section 130A of the Customs Act, 1962 against the Tribunal's order. The primary issue was whether the imported goods declared as old and used tyres required permission for import under Entry B3140 of the Act. The Tribunal concluded that the goods were not waste tyres but re-usable ones falling within the exclusion clause of the entry, hence not classified as hazardous waste.

2. The Tribunal's decision was based on the fact that the tyres in question could be re-used and had a residual life of about 45-55% of new tyres. The Tribunal correctly determined that the imported goods were not hazardous waste and did not require permission from the Ministry of Environment and Forests (MOEF) for importation. The exclusion clause of the entry applied to the re-usable tyres, leading to the conclusion that they were not hazardous waste.

3. The department argued that the Tribunal's decision was influenced by erroneous information provided by the party, leading to a reduction in redemption fine and penalty. However, the High Court upheld the Tribunal's decision, stating that the view taken by the Tribunal regarding the exclusion clause and classification of the imported goods was correct. The questions of law were answered in favor of the assessee, and the appeal was disposed of with no costs.

In conclusion, the judgment clarified the interpretation of the Customs Act regarding the import of goods declared as old and used tyres, determining that re-usable tyres are not classified as hazardous waste and do not require permission from the MOEF for importation. The decision was based on the exclusion clause of the entry, and the Tribunal's decision was upheld by the High Court despite the department's arguments regarding erroneous information.