2017 (2) TMI 1025 - AT - Customs

Classification of imported goods - Cameo Carving - classified under CTH 9601 9090 or not? - whether the goods are restricted item? - Held that - The item which is imported Carved Shell Articles is sought to be confiscated as the same being restricted under CTH 9601. It is noticed that the WCCB authority on examination of consignment, categorically recorded that imported goods are not covered under Wild Life (Protection) Act, 1972; also that Ministry of Commerce vide notification dated 26th February 2009 covered the item Worked Coral under Free imports category. It is not in dispute that imported goods are Worked Coral - It is undisputed that the Carved Shell Articles i.e. Worked Coral has been declared as Free imports, and hence nothing survives in the order passed by the lower authorities - confiscation and penalty set aside - appeal allowed - decided in favor of appellant.

Summary

Issues: Import of restricted goods, requirement of import license, classification under Customs Tariff Heading, confiscation of goods, penalty imposition.

Analysis:
1. Import of Restricted Goods: The appellant imported 39 pieces of Cameo Carving from Italy, classified under Customs Tariff Heading 9601 9090. The goods were found with shells, leading to the belief that they were restricted under Chapter 96 of the Import Policy. The Wildlife Crime Control Bureau (WCCB) confirmed that the imported goods were Carved Shell Articles, which are indeed restricted. The adjudicating authorities confiscated the goods under Section 111(d) of the Customs Act 1962 due to the lack of a specific import license.

2. Requirement of Import License: The appellant argued that despite the classification under CTH 9601, the goods did not require a license. They contended that if the imports were prohibited under the Wild Life (Protection) Act, 1972, the WCCB would not have issued a no objection certificate. However, the first appellate authority upheld the confiscation based on the requirement of a specific import license.

3. Classification under Customs Tariff Heading: The appellant pointed out that the items imported, Cameo Carving, were not covered under the Wild Life (Protection) Act, 1972, or CITES, indicating that no license was necessary. Reference was made to a notification stating that the import policy for Worked Coral under ITC (HS) Code 9601 90 40 was amended to be free instead of restricted.

4. Confiscation of Goods and Penalty Imposition: Upon careful consideration, it was found that the imported goods, categorized as Carved Shell Articles or Worked Coral, were declared as free imports according to a specific notification. As a result, the confiscation order under Section 111(d) of the Customs Act 1962 was set aside, along with the imposed penalty under Section 112(a). The lower authority was directed to release the consignment immediately.

In conclusion, the appeal was allowed, and the impugned order was set aside based on the reclassification of the imported goods as free imports, thereby nullifying the need for a specific import license and the subsequent confiscation and penalty.