Import prohibition for wildlife-derived shell buttons sustained, with confiscation upheld and customs penalty reduced.

Import of shell buttons made from a species listed in Schedule IV of the Wildlife (Protection) Act, 1972 was treated as prohibited under the EXIM Policy, so confiscation under Section 111(d) of the Customs Act, 1962 was upheld. The finding turned on the wildlife report identifying the goods as sea shell of the prohibited species. Penalty under Section 112(a) of the Customs Act, 1962 was, however, considered in light of the value of the goods and the overall facts and circumstances, and was reduced as excessive. Partial relief was therefore granted on penalty while confiscation remained confirmed.

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Issues: Whether the import of shell buttons made of a species listed in Schedule IV of the Wildlife (Protection) Act, 1972 was liable to confiscation under Section 111(d) of the Customs Act, 1962, and whether the penalty imposed under Section 112(a) of the Customs Act, 1962 required reduction.

Analysis: The goods were found to be made of sea shell of the species identified in the wildlife report, and the species was treated as prohibited for import under the EXIM Policy. On that basis, the prohibition was held to apply and the confiscation of the goods was found justified. At the same time, the value of the goods and the overall facts and circumstances were taken into account for determining whether the monetary penalty was excessive.

Conclusion: Confiscation of the goods was upheld, but the penalty was reduced from Rs. 1 lakh to Rs. 50,000, resulting in partial relief to the assessee.

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