1994 (8) TMI 144 - AT - Customs

CEGAT Upholds Customs' Decision to Confiscate Duracell Batteries Imported Without License

The Appellate Tribunal CEGAT, Madras upheld the Collector of Customs (Appeals), Madras' decision to confiscate Duracell Dry Cell Batteries imported ... Import Policy has to be followed in letter and spirit Issues:1. Interpretation of Import Policy 1992-97 regarding the import of Duracell Dry Cell Batteries without a license.2. Consideration of earlier clarifications by Customs House and CCI & E regarding the import of consumer goods under Open General License (OGL).3. Examination of the ban imposed on the import of consumer goods under the new policy.4. Evaluation of the binding effect of clarifications issued by licensing authorities on import policies.5. Assessment of the appellants' plea for re-export based on the validity period and alleged defects in the goods.Analysis:The appeal before the Appellate Tribunal CEGAT, Madras challenged the order of the Collector of Customs (Appeals), Madras, which confiscated Duracell Dry Cell Batteries as consumer goods covered by the Negative List under the Import Policy 1992-1997, requiring an import license. The appellants sought clearance under Open General License (OGL) despite not having the necessary license. The consultant for the appellants argued that earlier clarifications by CCI & E allowed the import of certain consumer goods under OGL, citing a specific letter regarding Buttons, snap, and zip fasteners. The consultant contended that the batteries imported by the appellants fell under a category that should be allowed import based on the mentioned clarifications.The learned SDR representing the respondent argued that despite previous clarifications, a ban on the import of consumer goods had been imposed under the new policy, making the import of appellants' goods impermissible. The Tribunal considered both arguments and acknowledged that the batteries were indeed consumer goods. The key issue was whether the appellants could import the goods under OGL based on the clarifications. The Tribunal analyzed the Import Policy 1992-97, noting that goods in the Negative List required licenses for import, and consumer goods fell under restricted items not permitted for import without a license.The Tribunal scrutinized the scope of the clarifications provided by licensing authorities and emphasized that such clarifications could not override the policy's provisions sanctioned by the legislature. The Tribunal found that the specific clarification cited by the consultant did not extend to all consumer goods and was limited to certain items like buttons, snap, and zip fasteners. The Tribunal held that the appellants' reliance on unofficial information or past practices did not justify the import of consumer goods without a license. Referring to legal precedents, the Tribunal emphasized the need to adhere to import policies strictly and upheld the lower authority's decision to confiscate the goods.However, considering the circumstances, the Tribunal reduced the redemption fine and penalty but rejected the plea for re-export due to insufficient evidence of defects in the goods. The Tribunal concluded that while modifications were made to the fines, the appeal was ultimately dismissed, affirming the confiscation of the goods under the Import Policy 1992-97.