1987 (12) TMI 222 - AT - Customs

Tribunal upholds Customs decision on confiscation of goods imported under invalid licenses

DIDWANIA IMPORT & EXPORT (P) LTD. Versus COLLECTOR OF CUSTOMS

The Tribunal upheld the Collector of Customs' decision to confiscate goods imported under invalid import licences for defective sheets, valued at Rs. ... Import of defective G.P. sheets against REP licence Issues:Appeal against order of Collector of Customs; Validity of import licences for defective sheets; Confiscation of goods under banned list; Interpretation of import policy; Validity of REP licences for import of defective sheets.Detailed Analysis:The appeal was filed before the Central Board of Excise and Customs against an order by the Collector of Customs, Bombay, regarding the import of defective sheets. The appellants imported 84 coils of G.P. sheets and sought clearance against 8 import licences, out of which 4 were deemed invalid by the Customs House. The Collector ordered confiscation of goods valued at Rs. 2,62,205.00 but allowed redemption upon payment of a fine of Rs. 1,00,000.00. The main issue was the validity of the import licences for the defective sheets.During the appeal hearing, the appellant's representative argued that the import policy permitted the import of defective sheets under certain conditions. He highlighted specific paragraphs in the policy that supported his contention. On the other hand, the JDR for the Collector supported the order, stating that the policy only allowed the import of prime quality sheets and that defective sheets were banned items unless specifically permitted.The Tribunal analyzed the relevant provisions of the import policy, particularly focusing on the definitions of prime quality items and banned items in Appendices 6 and 7. It was noted that the policy required all iron and steel items to be of prime quality unless specified otherwise. The specific entry in Appendix 6 listed defective sheets as banned items.The appellant's argument that the REP licences were valid for importing packing materials, including defective sheets, was rejected by the Tribunal. It was emphasized that the policy did not explicitly permit the import of banned items, and the licences did not specify the import of defective sheets. The Tribunal concluded that since the defective sheets were listed as banned items in Appendix 6, the Collector's decision to confiscate the goods was justified.In light of the above analysis, the Tribunal rejected the appeal, upholding the Collector's order of confiscation. The decision was based on the interpretation of the import policy and the specific provisions regarding banned items and REP licences.