2000 (3) TMI 316 - AT - Customs

Tribunal: Cattle feed not consumer goods, penalties set aside

The Tribunal held that cattle feed does not qualify as 'consumer goods' under the import policy as it does not directly satisfy human needs like food or ... Import Policy - Consumer goods Issues:1. Whether cattle feed qualifies as 'consumer goods' under the relevant import policy.2. Whether penalty imposed on the appellant as an agent of the seller of the vessel is justified.Issue 1:The case involved the import of a ship into Bhavnagar port for scrap, which contained cattle feed in one of its tanks. The department alleged that the cattle feed fell under the definition of 'consumer goods' as per the Import Policy and proposed confiscation. The Collector's order imposed penalties and allowed redemption on payment of fines. The appellant contested that cattle feed does not directly satisfy human needs as required for consumer goods. The department argued that feeding animals satisfies human emotional needs, thus qualifying as consumer goods. The Tribunal rejected this argument, emphasizing the direct satisfaction of human needs in the policy definition. It concluded that feeding animals does not directly fulfill human needs like food or clothing. Therefore, confiscation of cattle feed and the ship was deemed unsustainable, and the penalties were set aside.Issue 2:The second appellant, penalized as an agent of the vessel's master, challenged the penalty imposition. The department alleged unauthorized import rather than failure to declare goods in the manifest. The appellant contended it was not the agent of the vessel's master but only of the seller, limited to customs formalities. The Collector invoked Section 148(2) of the Act, holding agents liable for obligations and penalties incurred by the person in charge. The Tribunal analyzed the provision and clarified that liability falls on the agent only if they act on behalf of the person in charge. Since the appellant did not handle manifest filing and was not the vessel's agent, penalties were unjustified. The Tribunal allowed both appeals, setting aside the impugned order and providing consequential relief.This judgment clarifies the interpretation of 'consumer goods' under the import policy and the liability of agents in import-related penalties. The Tribunal's analysis focused on the direct satisfaction of human needs for goods to qualify as consumer goods and the specific role of agents in fulfilling obligations under the law.