Misdeclaration of HCFC-containing air conditioners as gas-free goods justified confiscation and related penalties under ozone rules.

Import of air conditioners found to contain HCFC gas was treated as import of prohibited goods because Rule 10 of the Ozone Depleting Substances (Regulation & Control) Rules, 2000 bars import of such substances without a valid licence. The bill of entry described the goods as air conditioners without gas, but examination, the invoice and packing list, and a statement recorded under Section 108 of the Customs Act, 1962 supported the finding that the goods contained HCFC gas and were misdeclared. On those facts, confiscation was considered justified, and the associated redemption fine and penalty were upheld as sustainable.

---

---

Issues: Whether air conditioners found to contain HCFC gas, an ozone-depleting substance, were liable to confiscation and whether the redemption fine and penalty imposed were sustainable.

Analysis: The goods were declared in the bill of entry as air conditioners without gas, but examination showed that they contained HCFC gas. Rule 10 of the Ozone Depleting Substances (Regulation & Control) Rules, 2000 prohibits import of such ozone-depleting substances without a valid import licence. The invoice and packing list did not support the claim that the goods were without gas, and the statement recorded under Section 108 of the Customs Act, 1962 supported the finding that the goods were intended to be declared as air conditioners without gas. On these facts, the import was of prohibited goods and the confiscation and consequential penalties were justified.

Conclusion: The confiscation of the goods and the imposition of redemption fine and penalty were upheld.

Ratio Decidendi: Import of goods containing ozone-depleting substances without a valid licence is prohibited, and where the imported goods are found to contain such substances despite a contrary declaration, confiscation and consequential penal action are sustainable.

---