TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal Decision: Confiscation of War Material, Scrap in Same Container Upheld with Redemption</h1> <h3>SUKARM ISPAT CO. Versus COMMISSIONER OF CUSTOMS, KANDLA</h3> The Tribunal upheld the confiscation of war material and scrap in the same container, allowing redemption, but set aside penalties and confiscation for ... Non production of pre shipment inspection certificate – confiscation and penalty – held that - We find no justification in confiscation of the containers which contained only the declared goods without any war material, or for imposition of penalty upon the appellants - Advocate appearing for the appellant has not disputed the absolute confiscation of the war material scrap or the confiscation of the remaining scrap in the same container with an option to the appellant to redeem the same. Accordingly, we uphold the absolute confiscation of the war material and confiscation with option to redeem the balance material contained in the same container, in which war material was found. Issues:Import of war material, validity of pre-shipment inspection certificate, confiscation of goods, penalties under Customs Act.Analysis:Issue 1: Import of War MaterialThe appellants imported a consignment of heavy melting scrap, where some containers were found to contain war material, a restricted/prohibited item as per Foreign Trade Policy. The Commissioner initiated proceedings for confiscation of the war material and other scraps used to conceal it. The Commissioner allowed redemption of remaining scrap on payment of a fine and imposed penalties under Section 112(a) (b) of the Customs Act, 1962.Issue 2: Validity of Pre-Shipment Inspection CertificateThe Ministry's circular required a valid pre-shipment inspection certificate by the appropriate authority. The appellant produced a certificate from Moody International, Iran, which was not a specified agency in the Handbook of Procedures. The DGFT clarified the registration requirements for branch offices after the consignment arrived. The Tribunal found no fault on the appellant's part for producing the certificate issued by the Iran branch office, as the registration requirement was clarified after the import.Issue 3: Confiscation of Goods and PenaltiesThe Tribunal upheld the confiscation of war material and the remaining scrap in the same container, with an option for redemption. Citing a precedent, the Tribunal set aside penalties imposed on the appellants. The Tribunal differentiated between the confiscation of war material and other goods, setting aside penalties and confiscation for containers without war material.ConclusionThe Tribunal upheld the confiscation of war material and scrap in the same container, allowing redemption. It set aside penalties and confiscation for containers without war material. The judgment clarified the validity of the pre-shipment inspection certificate and highlighted the importance of compliance with specified agencies for import procedures.
TaxTMI 
TaxTMI 
