2020 (6) TMI 361 - AT - Customs

Tribunal overturns confiscation order, directs release of goods with indemnity bond

Shri Shyam Singh Yadav Versus Commissioner of Customs (Import)

Shri Shyam Singh Yadav Versus Commissioner of Customs (Import) - TMI Issues Involved:1. Requirement of original authorization from DGFT for import clearance.2. Validity and utilization of the import license.3. Confiscation of goods and imposition of penalty.4. Entitlement to clear the goods under the import license.5. Waiver of warehouse charges or demurrage.Issue-wise Detailed Analysis:1. Requirement of Original Authorization from DGFT for Import Clearance:The central issue in this appeal was whether the original authorization from DGFT for the import of cartridges and other goods was mandatory for clearance by Customs authorities. The appellant, a renowned shooter, had an import license which was valid at the time of filing the Bill of Entry. However, the original license was reported lost, and a copy was provided instead. The Customs authorities insisted on the original license for clearance, which led to the confiscation of the goods.2. Validity and Utilization of the Import License:The appellant held an 'Advance import license' issued by the Joint Director General of Foreign Trade for importing specific items, including cartridges. The license was valid and revalidated up to 31 January 2015. The Bill of Entry was filed on 22 January 2015, during the validity period. The appellant provided evidence that the original license was valid and available when the goods landed, and the DGFT confirmed that the license could not be renewed post-expiry, ensuring no misuse.3. Confiscation of Goods and Imposition of Penalty:The goods were confiscated, and a penalty of Rs. 1,10,000 was imposed under Section 112(A) of the Customs Act due to the non-submission of the original import license. The appellant argued that the confiscation was unwarranted as the goods were imported during the license's validity, and the loss of the original license was reported with an FIR.4. Entitlement to Clear the Goods under the Import License:The appellant contended that the import license covered the import of the cartridges, and the utilization certificate from the Principal Commissioner of Customs confirmed that only one prior consignment had been cleared under the license. The appellant had not imported any other consignment under the said license, and the goods under dispute were within the permitted quantity.5. Waiver of Warehouse Charges or Demurrage:Considering the appellant's status as a renowned sportsman and the circumstances of the case, the tribunal waived any warehouse charges or demurrage above Rs. 25,000. The tribunal directed the Customs Department to release the goods upon the appellant filing an appropriate indemnity bond.Judgment:The tribunal found that the requirement to produce the original import license was essential but acknowledged the appellant's bona fide status and the validity of the import license at the time of filing the Bill of Entry. The tribunal set aside the order of confiscation and the penalty, directing the Customs Department to release the goods forthwith upon the appellant filing an indemnity bond. The appeal was allowed with consequential benefits, and the impugned order was set aside.