Confiscation order upheld for import license error, but redemption fines reduced, bringing relief to appellants.

The Tribunal upheld the order of confiscation due to the technical infringement of not having the end-product 'pigment binder' endorsed on the import licence. However, redemption fines were significantly reduced, providing relief to the appellants.

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Issues: Appeal against order-in-original for confiscation of imported consignments of styrene Monomer for alleged violation of import licence conditions.

Analysis:
1. The appellants imported consignments of styrene Monomer for use by M/s. Vipul Dyes & Chemicals, holding a licence for manufacturing dyes & dye intermediates. The goods were sought to be cleared against an automatic licence valid for the import of items for the manufacture of end-products specified in the licence.

2. The appellants argued that as monomer is used in the pigment binders, for which they hold a valid registration certificate, they are entitled to import items listed in the licence under the Import Export Policy AM 1983-84, which allows import of items in line with manufacturing activities specified in industrial licence or registration certificate.

3. The Respondent contended that since the end-product 'pigment binder' was not specifically mentioned in the import licence, the import of monomers for the binder was not permitted. The absence of the end-product in the licence precluded the import of raw materials for the binder.

4. The Tribunal observed that the import of goods for manufacturing final products specified in the industrial licence or registration certificate is permitted under the Policy provisions. However, the omission of the end-product 'pigment binder' in the import licence was noted, despite being endorsed in the registration certificate earlier. Customs authorities cannot exceed the licence's specifications and cannot introduce new elements not included in the licence.

5. Consequently, the Tribunal upheld the order of confiscation due to the technical infringement of not having the end-product 'pigment binder' endorsed on the import licence. However, considering the circumstances, the redemption fines were significantly reduced from Rs. 2,60,000 to Rs. 25,000 and from Rs. 1,60,000 to Rs. 15,000, granting consequential relief to the appellants.

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