2026 (2) TMI 1291 - AT - Customs

BIS Registration Requirement: Deferred order did not absolve pre-supersession imports; confiscation and penalty set aside.

BIS registration was required at the date of import (05.04.2025) under the Quality Control Order of 20.09.2024; the subsequent deferment by S.O. 2232(E) ... Mandatory BIS registration for import of specified electrical appliances - confiscation u/s 111(d) - prospective operation of a superseding Quality Control Order (no retrospective effect) - mens rea as a requisite for imposition of penalty - redemption fine as alternate relief to confiscation - HELD THAT:- We find that the impugned good were imported by the appellant by filing the bill of entry dated 05.04.2025; we also find that the only issue involved in the present case is whether there is any requirement of registration as on the date when the goods were imported into the country; we also find that earlier vide order dated 17.09.2024, there was a requirement of furnishing the certificate from BIS but that requirement was done away with vide subsequent order dated 19.05.2025 and the registration was deferred till 19.03.2026. Further, we find that in the subsequent order dated 19.05.2025 which deferred the effective date to 19.03.2026, explicitly states that it supersedes QOC 2024 (“except as respects things done or omitted to be done before such supersession”). We also find that the registration with the BIS is only a procedural requirement for which there is no justification for confiscation of the goods and imposition of penalty. We also find that there is no mens rea on the part of the appellant warranting the imposition of penalty. We also find that though there is a procedural violation but the confiscation of the goods is not warranted in the facts and circumstances of the case. Thus, we are of the considered view that only imposition of redemption fine will meet the ends of justice. Hence, we impose redemption fine of Rs. 15,000 and set aside the imposition of penalty and direct the department to release the goods in favour of the appellant subject to payment of redemption fine of Rs. 15,000 within a period of one week from the date of receipt of certified copy of this order. Issues: (i) Whether registration with the Bureau of Indian Standards (BIS) was required on the date of import (05.04.2025) and whether confiscation and penalty for non compliance with the Quality Control Order are justified.Analysis: The Tribunal examined the sequence of Quality Control Orders: the Safety of Household, Commercial and similar Electrical Appliances Quality Control Order dated 20.09.2024 which required BIS registration at import, and the subsequent order S.O. 2232 (E) dated 19.05.2025 which deferred the effective date to 19.03.2026 and stated it superseded the earlier order 'except as respects things done or omitted to be done before such supersession.' The goods were imported by bill of entry dated 05.04.2025, a date falling after the 20.09.2024 Order and before the deferred effective date set by S.O. 2232 (E). The Tribunal found that the requirement of BIS registration at the relevant time attached to the goods and that the subsequent deferment did not have retrospective effect to absolve acts done prior to supersession. However, the Tribunal also found the violation to be procedural in nature, noted absence of mens rea on the part of the importer, and observed that the goods were not prohibited but importable subject to BIS certification by the manufacturer/exporter.Conclusion: The Tribunal concluded that although BIS registration was required at the time of import and the import fell within the regulatory requirement, the facts did not warrant confiscation or imposition of penalty. The Tribunal set aside the confiscation and penalty, imposed a redemption fine of Rs. 15,000, and directed release of the goods on payment of that fine within one week of certified copy of the order.