2011 (1) TMI 1189

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....f any representation from the respondents. 3. The learned Departmental Representative Shri K.S. Chandrshekar, assisted by Shri Phaneendra Rao, AC, Hyderabad Commissionerate are heard. 4. The representatives of the Department would submit that the respondents herein had imported goods and filed Bill of Entry. At the time of filing the BIE, they did not have any valid Importer-Exporter Code (IEC) Number allotted by DGFT as per the provisions of Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. It is their submission that once the goods imported without IEC Number, they fall under the category of prohibited goods. It is their submission that these goods are liable for confiscation under Section 111 sub-clau....

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....exported without possessing an IEC would mean that the goods are prohibited, which would render the goods as liable for confiscation as per the provisions of Section 111(d) of the Customs Act, 1962 and provisions of Section 112 and provisions of Section 125 of the Customs Act are attracted. They would rely upon the judgment of Nazir-ur-Rahman v. CC, Mumbai [2004 (174) E.L.T. 493 (Tri.-Mumbai)] and the judgment of the Hon'ble Supreme Court 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, ....

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....n of Sec. 111(d) can be alleged as sought for by the reviewing authority. In this context, it may be pertinent to reproduce the definition of 'prohibited goods' as per Section 2(33) of the Customs Act, which reads as follows : (33) "prohibited goods" means any goods the import or export of which is subject to any prohibition under this Act or any other law for the time being in force but does not include any such goods in respect of 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....