Pre-shipment inspection certificate requirement inapplicable where melting scrap consignments fell under 100% physical examination circular

Imported melting scrap covered by Circular No. 56/2004-Cus. dated 18-10-2004, because the bills of lading were prior to 25-10-2004, was required to be cleared only after 100% physical examination. The record showed that such examination was carried out and no offending material was found. On that factual basis, the Pre-shipment Inspection Certificate requirement did not apply to these consignments, so confiscation solely for non-production of that certificate was not sustainable.

---

---

Issues: Whether confiscation of imported melting scrap for non-production of Pre-shipment Inspection Certificate was sustainable when the bills of lading were before the cut-off date and the imports were covered by the applicable circular prescribing 100% physical examination.

Analysis: The imports were found to fall within the category of goods covered by Circular No. 56/2004-Cus. dated 18-10-2004 because the bills of lading were prior to 25-10-2004. For such consignments, the circular required clearance after 100% physical examination. The record showed that the consignments had undergone 100% examination and no offending material was found. In those circumstances, the requirement of a Pre-shipment Inspection Certificate was not applicable to these consignments, and confiscation solely for its absence could not be sustained.

Conclusion: The confiscation was not sustainable and the appeals succeeded in favour of the appellant.

---