Imported "Old and Used Tyres" redemption allowed with reduced penalty and no MOEF permission needed

The Tribunal allowed redemption of the imported consignment of "Old and Used Tyres" on payment of a fine of 15% of the declared value and reduced the penalty to Rs. 30,000. It held that MOEF permission was not necessary for clearance of such goods, citing a previous decision. The appeal was disposed of in favor of the Appellant, with the consignment permitted for redemption based on the precedent established in a similar case.

---

---

Issues:
Import of old and used tyres without required permissions and clearances.

Analysis:
The Appellant imported a consignment of "Old and Used Tyres" without the necessary import license and permission from the Directorate General of Foreign Trade, New Delhi, as required under Exim Code 40122020 of ITC(HS) Classification 2009-2014. The Customs Department withheld clearance of the consignment, initiating proceedings against the Appellant under the Hazardous Wastes Rules, 2008. The adjudication order dated 31.12.2014 ordered confiscation of goods under Section 111(d) and 111(o) of the Act, with an option for redemption on payment of a fine. The ld. Commissioner (Appeals) upheld this order, leading the Appellant to appeal before the Tribunal.

The Ld. Advocate for the Appellant argued that MOEF permission was not required for clearance of old and used tyres, citing a previous Tribunal decision. The Appellant agreed to pay the redemption fine and penalty at a reduced rate. On the other hand, the Ld. DR for the Respondent supported the findings in the impugned order.

The Tribunal, after hearing both sides, referred to a previous decision in the case of Jibran Overseas, where it was held that MOEF permission was not necessary for clearance of old and used tyres. Following this precedent, the Tribunal allowed redemption of the imported consignment on payment of a fine of 15% of the declared value and reduced the penalty to Rs. 30,000 considering the circumstances of the case.

In conclusion, the Tribunal found that the lower authorities' requirement of MOEF permission for clearance of old and used tyres was not legally sustainable. The appeal was disposed of with the consignment allowed for redemption on payment of the specified fine and reduced penalty, in line with the precedent set in the case of Jibran Overseas.

---