1994 (6) TMI 92 - AT - Customs

Import Tribunal Upholds Confiscation Over Licensing Violation

The appellate tribunal upheld the confiscation of goods valued at Rs. 1,32,932 for importation without a valid license under relevant customs and ... Confiscation and penalty Issues: Import of goods without a valid license, confiscation of goods, penalty impositionImport of goods without a valid license:The case involved the import of goods by the appellants without a specific import license from the Chief Controller of Imports and Exports, as required by Item 149 of Appendix 28 of Import Export Policy 1988-91. The goods, described as 'Chassis for LM 3165P VHF/FM, hand held trans-receivers,' were found to be 50 sub-assembled sets of hand-held transceivers for vehicle communication systems. The importer failed to produce the necessary import license, leading to a violation of Section 11 of the Customs Act, 1962, and Section 3 of the Import Export Control Act, 1947. Consequently, the goods valued at Rs. 1,32,932 were deemed liable for confiscation under Section 111(d) of the Customs Act, 1962.Confiscation of goods and penalty imposition:The adjudicating authority confiscated the goods with an option for redemption upon payment of a fine of Rs. 25,000. Additionally, a penalty of Rs. 10,000 was imposed on the importer. The importer contended that the goods were mistakenly supplied by the supplier without certain components, but the appellate tribunal found this argument unacceptable due to the lack of evidence supporting a bona fide mistake. The tribunal noted that no valid license had been produced by the importer, and as such, upheld the confiscation of the goods and the imposition of the penalty. The tribunal rejected the appeal, confirming the impugned order in open court.This judgment highlights the importance of complying with licensing requirements for the importation of goods and the consequences of failing to do so under relevant customs and import-export control laws. The decision underscores the need for importers to ensure they have the necessary licenses and documentation in place to avoid confiscation and penalties for non-compliance with regulatory provisions.