2014 (9) TMI 471 - HC - Customs

High Court directs testing of toy samples at IIT Chennai to resolve import dispute

The High Court of Madras disposed of the appeal by directing the testing of representative samples at the Indian Institute of Technology, Chennai, to ... Import of toys - need for testing - whether for the purpose of importing toys, the representative samples are to be sent to testing laboratory and if found to be in conformity with the requirement of law, the toys can be allowed to be imported - requirements of DGFT Notification 113 (RE-2008)/2004-2009 dated 16.6.2009. - appellant submitted that the primary document has already been submitted and there is no need for further testing. However, the Department pleaded that there appears to be no co-relation between the goods imported and the requirements as per the provisions of Standards of Weights and Measures (Packaged Commodities) Amendment Rules, 2006, more particularly, Rule -6 and the further plea of the Department is that the goods should be tested by the competent authority. Held that:- The appellant/importer is agreeable for test on sample basis by Indian Institute of Technology. In order to cut short the litigation, the appeal is disposed of directing the respondent herein to send the representative samples of toys to testing laboratories viz., Indian Institute of Technology (IIT), Chennai-36 as per the procedure and on the basis of such report, appropriate action can be taken thereafter. The Indian Institute of Technology has agreed to have the samples tested at a nominal cost to be borne out by the appellant, for which, the appellant has also consented and IIT should submit a report at the earliest to the Customs Department with a copy to the appellant/importer so as to allow the parties to work out the remedies as per law. - Decided in favor of revenue. Issues:1. Appeal challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal.2. Requirement of sending representative samples to testing laboratory for importing toys.3. Compliance with DGFT Notification and testing guidelines.4. Lack of details on packaging materials leading to confiscation of goods.5. Dispute over the necessity of further testing of imported toys.6. Agreement for testing on a sample basis by Indian Institute of Technology.Analysis:Issue 1: The appellant filed an appeal challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal, confirming the order of the Commissioner (Appeals). The primary issue raised was regarding the import of toys from China and the compliance with the requirements of DGFT Notification.Issue 2: The main issue before the court was whether representative samples of toys needed to be sent to a testing laboratory for verification before allowing the import. The Commissioner (Appeals) and the Tribunal emphasized the importance of testing the goods to ensure compliance with standards.Issue 3: The Commissioner (Appeals) relied on CBEC guidelines mandating the sending of representative samples to certified laboratories for testing. The Tribunal upheld this decision, directing the release of goods if they conform to specified standards after testing in accordance with DGFT Notification.Issue 4: The Tribunal confirmed the confiscation of plastic toys imported from China due to the lack of details on the packaging materials. While no penalty was imposed on the importer, the Commissioner (Appeals) emphasized the importance of following testing guidelines to establish the link between goods and certificates.Issue 5: The appellant/importer argued against the necessity of further testing, stating that the primary document had already been submitted. However, the Department insisted on testing to ensure compliance with the Standards of Weights and Measures.Issue 6: The appellant/importer agreed to testing on a sample basis by the Indian Institute of Technology. To expedite the resolution, the court directed the sending of representative samples to IIT Chennai for testing, with the cost to be borne by the appellant.In conclusion, the High Court of Madras disposed of the appeal by directing the testing of representative samples at the Indian Institute of Technology, Chennai, to verify compliance with standards, emphasizing the importance of following testing procedures to resolve the dispute over the import of toys effectively.