Import without Import Export Code treated as a remediable lapse, with confiscation and penalty not sustained.

Import without an Import Export Code could attract confiscation under the Customs Act, but the lapse was treated as remediable where the goods were not prohibited and there was no allegation of duty evasion or suppression. The adjudicating authority also found no special commercial advantage and considered any fine or penalty only nominal. On that factual basis, the order dropping confiscation proceedings and consequential penalty was upheld, and the Revenue's challenge was rejected.

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Issues: Whether import of goods without an Import Export Code, though liable to confiscation under the Customs Act, justified interference with the adjudicating authority's order dropping confiscation proceedings and consequential penalty.

Analysis: The import was made without the required Import Export Code, but the goods were not prohibited goods and there was no allegation of duty evasion or suppression. The statutory scheme under Sections 111 and 112 renders goods liable to confiscation for contravention, but Section 124 requires notice and hearing before confiscation, indicating that the alleged contravention may be defended against and the authority may assess the gravity of the lapse. The adjudicating authority treated the omission as a remediable lapse, noted the absence of special commercial advantage, and considered that any fine or penalty would only be nominal.

Conclusion: The adjudicating authority's decision to drop the proceedings was upheld and the Revenue's appeal was rejected.

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