Permissible import of ferrous scrap from UAE defeats confiscation where no misdeclaration or valid export ban was shown.

Import of ferrous waste and scrap from UAE was treated as permissible under the prevailing foreign trade and customs framework where the importer produced the commercial invoice, packing list, certificate of origin, bill of lading, PSIC and container tracking details. The allegation of misdeclaration failed because the record did not show any false declaration by the importer. A later DGFT memorandum could not retrospectively invalidate a valid PSIA-issued certificate, and the Dubai Customs notices did not establish an effective export ban on the relevant date. On that basis, confiscation was unsustainable and the redemption fine and penalty were set aside.

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Issues: Whether the appellant violated the Foreign Trade Policy or customs law by importing ferrous waste and scrap from UAE, warranting confiscation, redemption fine, and penalty.

Analysis: The import of ferrous waste and re-melting scrap from Dubai/UAE was held to be freely permissible under Indian law, and the importer had produced the commercial invoice, packing list, certificate of origin, bill of lading, PSIC, and container tracking details. The finding of mis-declaration was rejected because the record did not show any false declaration by the importer. It was also held that the subsequent DGFT memorandum could not retrospectively invalidate a valid PSIA-issued certificate, and the Dubai Customs notices did not establish an effective export ban on the relevant date of inspection. The retrospective UAE restriction was therefore treated as insufficient to defeat a compliant import made under the prevailing policy framework.

Conclusion: The confiscation-related finding was unsustainable, and the redemption fine and penalty were set aside in favour of the appellant.

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