DGFT prior-intimation notification did not justify confiscation where non-compliance was procedural and goods were already warehoused.

A DGFT notification requiring prior intimation for hazardous chemicals was held not, by itself, to attract the deeming fiction under Section 3(3) of the Foreign Trade (Development and Regulation) Act, 1992 so as to support confiscation under Section 111(d) of the Customs Act, 1962. The Tribunal noted that the goods had already been permitted to be imported and warehoused by Customs, and that non-compliance arose from lack of awareness rather than deliberate violation. On those facts, the lapse was treated as procedural, so confiscation and penalty were held unsustainable and the impugned order was set aside.

---

---

Issues: Whether imported goods were liable to confiscation and penalty for non-compliance with the DGFT notification requiring prior intimation in respect of hazardous chemicals.

Analysis: The import and warehousing of the goods had been permitted by the Customs authorities. The notification requiring prior intimation was of recent issue, and the non-compliance was found to be due to lack of awareness rather than deliberate violation. The Tribunal followed its earlier reasoning that the notification, having been issued under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, could not be treated as an order under Section 3(2) so as to attract Section 3(3) and, in turn, confiscation under Section 111(d) of the Customs Act, 1962. On the facts, the lapse was treated as procedural and not as a basis for confiscation or penalty.

Conclusion: The confiscation and penalty were not sustainable and the appeal was allowed.

Final Conclusion: The impugned order was set aside and the appellant obtained consequential relief.

Ratio Decidendi: A notification issued under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 does not, by itself, attract the deeming fiction under Section 3(3) so as to justify confiscation under Section 111(d) of the Customs Act, 1962 when the violation is non-deliberate and the goods were already permitted to be warehoused.

---