Tribunal Overturns Confiscation of Imported Scraps, Citing Circular Provisions

The Tribunal set aside the confiscation of imported melting scraps due to the absence of a Pre-shipment Inspection Certificate and non-compliance with a Public Notice. The consignments, loaded before the relevant cut-off date, were subject to clearance under Circular provisions exempting them from the certificate requirement. Despite no offending material found during examination, the confiscation was deemed unjustified. Relying on a previous Tribunal decision and Circular guidelines, the Tribunal allowed the appeals, granting relief to the appellant by overturning the confiscation orders.

---

---

Issues: Confiscation of melting scraps due to lack of Pre-shipment Inspection Certificate and compliance with Public Notice dated 18-10-04.

Confiscation Grounds: The appeals challenged the confiscation of imported melting scraps by the appellant, citing the absence of a Pre-shipment Inspection Certificate and non-compliance with the Public Notice dated 18-10-04 issued by the Ministry of Commerce.

Appellant's Contention: The appellant argued that the consignments were loaded onto the vessel before the Public Notice was issued, referencing Circular No. 56/2004-Cus. The appellant contended that since the Bills of Lading were issued before the cut-off date of 25-10-2004, the consignments should have been cleared after 100% examination. They emphasized that the examination revealed no offending material, and confiscation was unjustified. The appellant also relied on a previous Tribunal decision in their own case where similar consignments loaded before 25-10-04 were allowed.

Circular Provisions: The Circular dated 18-10-2004 categorized metal scrap into two groups: Category-1 for scrap already in India but uncleared, and Category-2 for scrap to be shipped to India after 25-10-2004. It outlined procedures for clearance after 100% physical examination, including re-warehousing options and police assistance during examination. The Circular's provisions were applicable to consignments with Bills of Lading issued before 25-10-2004, exempting them from the need for a Pre-shipment Inspection Certificate.

Judgment: The Tribunal found that the consignments in question were required to be cleared under the Circular's provisions since their Bills of Lading predated 25-10-2004. Notably, no offending goods were discovered during the 100% examination, rendering the confiscation unjustified. As per the previous Tribunal order and the Circular's guidelines, the confiscation was deemed unsustainable. Consequently, the Tribunal set aside the impugned confiscation orders and allowed the appeals, granting consequential relief to the appellant.

---