Tribunal upholds confiscation of imported spares for improper declaration

The Tribunal upheld the confiscation of imported old and used spares due to improper declaration and violation of Foreign Trade Policy provisions. The appellant's argument that the goods were capital goods under Cenvat Credit Rules and allowed under the Policy was dismissed as they did not appear during proceedings. The redemption fine was reduced to Rs. 10,00,000 and the penalty to Rs. 1,00,000. The impugned order was modified accordingly, and the appeal was disposed of on 23/05/2018.

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Issues: Import of old and used spares without declaration, violation of Foreign Trade Policy provisions, confiscation of goods, imposition of penalty.

Analysis:
1. The appellant imported goods declared as old and used spares without proper declaration. The Customs Commissioner ordered confiscation of the goods under Sections 111(d), 111(l), and 111(m) of the Customs Act, 1962, along with a fine and penalty. The appellant argued that the imported goods fell under the definition of capital goods as per Cenvat Credit Rules, 2004, and were allowed to be freely importable under the Foreign Trade Policy 2004-09. They contended that the goods were meant for providing taxable services and were not prohibited goods. However, the appellant did not appear during the proceedings.

2. The Assistant Commissioner representing the revenue reiterated that the imported goods were old and used spares, not declared properly, and imported in violation of the Foreign Trade Policy provisions. He argued that since the goods were imported illegally without a license, confiscation and penalty were justified under the Customs Act, 1962. The Assistant Commissioner highlighted the discrepancies in the declaration and emphasized that the goods were correctly confiscated and penalty rightly imposed on the appellant.

3. Upon careful consideration, the Tribunal analyzed whether the appellant imported old and used spares in contravention of the Foreign Trade Policy provisions and if they were liable for confiscation and penalty. It was noted that the goods imported were old and used spares, falling under the restrictions of Para 2.17 of the Foreign Trade Policy. The Tribunal observed that no Chartered Engineer's Certificate was produced to prove the residual life of the spares. Additionally, some goods were not declared by the appellant. Consequently, the Tribunal upheld the confiscation of goods and imposed a penalty. However, considering the circumstances, the redemption fine was reduced to Rs. 10,00,000 and the penalty to Rs. 1,00,000.

4. In the final decision, the impugned order was modified to reduce the redemption fine and penalty. The appeal was disposed of accordingly, with the modified penalties imposed. The judgment was pronounced in court on 23/05/2018.

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