2012 (8) TMI 135 - AT - Customs

Tribunal Overturns Confiscation of Marble Blocks for Import License Issue

M/s. Dee Pearls (India) Pvt. Ltd., Versus Commissioner of Customs (Imports)

M/s. Dee Pearls (India) Pvt. Ltd., Versus Commissioner of Customs (Imports) - TMI Issues involved:Import of Rough Marble Blocks without a license, confiscation under Section 111(d) of the Customs Act, 1962, redemption fine, penalty imposition, validity of subsequently obtained import license, applicability of license to goods already imported, interpretation of relevant judgments.Analysis:1. Import of Rough Marble Blocks without a license: The appellant imported Rough Marble Blocks without the required import license, leading to the goods being held liable for confiscation under Section 111(d) of the Customs Act, 1962. The appellant was allowed to redeem the confiscated goods upon payment of a redemption fine and a penalty was imposed. This issue forms the basis of the appeal.2. Validity of subsequently obtained import license: The appellant subsequently obtained an import license permitting the import of the same quantity of Rough Marble Blocks that were already imported. The appellant argued that this license regularized the imports and requested reconsideration based on this new license. The key contention was whether the subsequently obtained license could validate the earlier imports made without a license.3. Interpretation of relevant judgments: The Authorized Representative for the Revenue referred to a judgment of the Hon'ble High Court, Bombay, emphasizing that importers cannot benefit from their own wrong by importing goods without a license and then seeking to validate the import with a subsequent license. This judgment was crucial in determining the applicability of the subsequently obtained license to the imports made prior to its issuance.Judgment Analysis:The Tribunal examined the subsequently obtained import license, which permitted the import of the same quantity of Rough Marble Blocks already cleared by Customs against an undertaking/bond. The license, though issued after the imports, was deemed relevant for reconsideration. The Tribunal set aside the impugned order and remanded the matter to the adjudicating authority for a fresh review in light of the new license. The decision highlighted the importance of providing a reasonable opportunity for the appellant to present their defense based on the subsequently obtained license. The appeal was allowed by way of remand, emphasizing the need for a fresh consideration based on the updated circumstances.