2026 (2) TMI 748 - AT - Customs

Ministerial import clearance for a specified grade precludes enforcement of restrictions and bars fines or personal penalties against similar importers.

Where customs identified imported goods as J-3 grade and an administrative certificate permitted import of that grade for other importers, the central ... Imposition of redemption fine and penalty - import of J3 grade Cold Rolled Stainless Steel - ministerial certificate permitting particular grade binding on other importers - identification of goods by declared grade - HELD THAT:- The advocate for the party is seeking to place reliance on the decision of Commissioner of Customs Mundra vs Shree Khatu Shyam Sales and Tubes LLP [2026 (2) TMI 302 - CESTAT AHMEDABAD] which though dealing with grade J2 but by seeking reliance on the certificate issued by the concerned Ministry that J2 Grade are not objectionable for import had allowed the benefit. The Division Bench after considering that the restriction cannot be allowed to be proceeded with, once the concerned Ministry, inter alia has agreed that the grade mentioned was permissible and has permitted the same to be imported by same or any other party, then it is to be applied for other parties as well, in this case also the same ratio applies. Further the goods in this case have been also been identified by the customs as being J-3 grade as declared. This court following the substance of ruling above is in agreement with the appellant that the appeal on aspects of Redemption Fine and Personal Penalty is allowable. Issues: Whether the redemption fine and personal penalty imposed on import of J-3 grade cold rolled stainless steel are sustainable where the goods were identified as J-3 grade by customs and a certificate/administrative clearance in respect of a similar grade has permitted import, thereby applying the same ruling to other importers.Analysis: The Tribunal examined whether an administrative clearance or certificate issued by the concerned Ministry permitting import of a specific grade, when applied to another importer whose goods are identified as the same grade, prevents the department from enforcing a restriction and imposing monetary penalties. The Tribunal considered the principle that where the Ministry has indicated that a particular grade is permissible for import and that clearance has been applied to an importer (or other importers), the restriction cannot thereafter be sustained against similarly situated importers. The facts show customs identified the goods as J-3 grade and the appellant relied on a decision and certificate permitting import of an equivalent grade; the Tribunal applied that ratio to the present facts and considered the consequences for fines and personal penalties.Conclusion: The redemption fine and personal penalty imposed on the appellant are not sustainable and the appeal is allowed with consequential relief; the decision is in favour of the appellant.Ratio Decidendi: Where the competent Ministry has administratively permitted import of a specified grade, that clearance applies to similarly situated importers whose goods are identified as the same grade and precludes sustaining departmental restrictions and consequent fines or personal penalties.