2010 (12) TMI 1028

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....otted by DGFT as per the provisions of Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. It is the submission that once the goods are imported without IEC Number, they fall under the category of prohibited goods. It is the submission that these goods are liable for confiscation under Section 111 sub-clause (d) of the Customs Act, 1962 and once the goods are liable for confiscation, penalty is imposable under the provisions of Section 112 of the Customs Act, 1962. It is the submission that the adjudicating authority has imposed penalty under Section 117 of the Customs Act, 1962. He would submit that the question of imposition of penalty under Section 117 of the Customs Act, 1962 would not arise, as it is evident that the....

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....in the case of Shri Om Prakash Bhatia v. CC, Delhi [2003 (155) E.L.T. 423 (S.C.)] wherein it was held that prohibition of importation or exportation of goods could be subject to certain prescribed conditions, to be fulfilled before or after clearance of such goods and if such conditions are not fulfilled, it may amount to prohibited goods as per provisions of Section 2(33), 11 and 113(d) of the Customs Act, 1962. In short, the entire argument of the Revenue is that the goods, which were imported without IEC Code, are liable for confiscation under Section 111(d) of the Customs Act and consequences thereon should have been considered by the lower authorities. 4. I have perused the Order-in-Original and Order-in-Appeal. The relevant fi....

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.... which the conditions subject to which the goods are permitted to be imported or exported have been complied with; It is clear from the above definition that importation without IEC ipso facto does not make the goods prohibited. Something more is required before taking a view that the provisions of Sec. 111 are attracted in such cases. As both the impugned order and the grounds of appeal of the appellants do not say anything about this aspect, it is clear that the importation is not in contravention of any other conditions imposed in respect of such goods or the provisions of the Customs Act or any other law for the time being in force. The respondent did not produce a valid IEC code number before the Customs authorities, for which the a....