9911796707
TMI Blog2008 (8) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... an, Advocate, for the Appellant. Shri M.K.A.K. Mohiddin, JDR, for the Respondent. [Order per: P.G. Chacko, Member (J)]. - The appellants had imported Emu chicks and eggs from USA claiming the benefit of Customs Notification No. 23/98 dated 2-6-98 in terms of Sl. No. 1 thereof, which prescribed 'Nil' rate of duty for 'cows, heifers, bulls, goats, sheep, pigs, angora rabbits, ducklings and pureline poultry stock', all covered by Chapter 1 of the CTA Schedule. These imports were not under any specific import licence. In adjudication of a show-cause notice issued to the importer, the Commissioner of Customs classified the Emu birds under Heading 01.06 and demanded duty of over Rs. 15 lakhs from the party by denying them exemption under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recognized as 'poultry stock', for the purpose of the benefit of the Notification. As regards confiscation of the goods, it is submitted that the redemption fine imposed by the Commissioner is disproportionately high. Though no valid import licence could be produced by the appellants, they were able to show that their application for such licence was pending with the licensing authority. The Ministry of Agriculture, Department of Animal Husbandry and Dairying had recommended issuance of licence. Further, the Chairman of the Indian Investment Centre (a Govt. of India organization), Department of Economic Affairs, Ministry of Finance, had also recommended to the DGFT to issue import licence to the appellants for import of live Emu chicks from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs. However, HSN Heading 01.06 provides a long list of animals, one of which reads "other birds not specified in Heading 01.05". Obviously, Emu could be classified under Heading 01.06 as rightly done by the Commissioner. The question remains as to whether the benefit of the Notification could be extended to these birds. There is no quarrel about the proposition that exemption notifications have to be strictly construed. The expression 'Pureline Poultry Stock' used in the above Notification has therefore to be strictly construed. In this manner of interpretation, the classification specified for the goods in the Notification must also have a say. In other words, the question to be considered is in the nature of whether Emu birds classifiabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a fine of Rs. 3 lakhs in lieu of confiscation of the Emu chicks and eggs totally valued at nearly Rs. 28 lakhs. He has also imposed a penalty of Rs. 2 lakhs on the importer. We have found a valid point in the counsel's argument that certain mitigating circumstances existed in this case. The appellants had, in fact, applied to the DGF for licence for import of the birds and eggs and their case was recommended by Governmental agencies. These are supported by documentary evidence, which would indicate that the appellants had no intention to import the goods unauthorizedly. This aspect ought to have entered into reckoning when the learned Commissioner took up the case for determination of quanta of fine and penalty. We are of the considered vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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