Court allows appeal, cancels redemption fine, upholds Rs. 10,000 penalty for metal scrap import without certificate.

The appeal was partly allowed, setting aside the redemption fine but maintaining the penalty of Rs. 10,000 imposed on the appellants for importing metal scrap without the required pre-shipment inspection certificate from the authorized agency specified in the Handbook of Procedures. The judge emphasized the necessity of obtaining certificates from the correct agencies as per the procedures outlined.

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Issues:
Penalty for importing metal scrap without pre-shipment inspection certificate from authorized agent.

Analysis:
The appellants were penalized for importing metal scrap without obtaining a pre-shipment inspection certificate from an authorized agent listed in the Handbook of Procedures. The appellant's consultant argued that they had obtained a certificate from a different agency, M/s. Alex Stewart (Assayers) Geo, and had also shown that the goods did not contain any explosive materials during examination. The consultant requested leniency in reducing the fine and penalty. On the other hand, the respondent argued that the agency notified for the origin of the goods was M/s. Intertek Testing Services Ltd., and since the appellants did not obtain the certificate from them, the imposed fine and penalty were justified.

Upon hearing both sides, the judge found that the appellants were indeed required to obtain and present a pre-shipment inspection certificate for importing the metal scrap in question. The appellants had obtained a certificate from M/s. Alex Stewart (Assayers) Geo, which was an authorized agency at specific locations but not at the branch in Singapore, from where the goods originated. This technical violation meant that the appellants should have obtained the necessary PSI Certificate from M/s. Intertek Testing Services Ltd. in Singapore. Despite this violation, no explosive material was found in the consignment during examination. Considering these factors, the judge took a lenient view and decided to set aside the redemption fine while retaining the penalty of Rs. 10,000 imposed on the appellants.

In conclusion, the appeal was partly allowed with the decision to set aside the redemption fine while maintaining the penalty. The judgment highlighted the importance of obtaining pre-shipment inspection certificates from the correct authorized agencies as specified in the relevant procedures.

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