CESTAT allowed the appeal and set aside the impugned...

CESTAT allowed the appeal and set aside the impugned adjudication: the confiscation of the imported stainless steel scrap, the redemption fine and the penalty under s.112(a) were quashed. The Tribunal held that absence of DGFT notification of a Turkish pre-shipment inspection agency does not legally prohibit imports from Turkey and the Customs/FTDR statutes do not permit inferring illegality solely from non-notification. Where goods may prima facie fall within s.111 categories, confiscation remains a discretionary remedy for the Adjudicating Authority; here the contravention of the Foreign Trade Policy was characterized as a technical breach not warranting forfeiture or monetary penalties, and the appellant's relief was accordingly granted.