2008 (8) TMI 111

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....y Chapter 1 of the CTA Schedule. These imports were not under any specific import licence. In adjudication of a show-cause notice issued to the importer, the Commissioner of Customs classified the Emu birds under Heading 01.06 and demanded duty of over Rs. 15 lakhs from the party by denying them exemption under Sl. No. 1 of the Table annexed to the Notification. Further, having found that specific licence was required to import the above birds but no such licence was produced by the importer, the learned Commissioner also ordered confiscation of the birds under Section 111(d) of the Customs Act. However, an option was given to redeem the goods against payment of a fine of Rs. 3 lakhs. A penalty of Rs. 2 lakhs was also imposed on the importe....

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....Husbandry and Dairying had recommended issuance of licence. Further, the Chairman of the Indian Investment Centre (a Govt. of India organization), Department of Economic Affairs, Ministry of Finance, had also recommended to the DGFT to issue import licence to the appellants for import of live Emu chicks from USA. These circumstances should have been taken into account in determining the quanta of fine and penalty. We have heard the learned JDR also, who submits that there is no evidence in support of the claim that the Emu birds constituted 'pureline poultry stock' for the purpose of exemption under Sl. No. 1 of the Notification. 'Poultry stock' consisted of the birds specified under Heading 01.05 of the Tariff. Emu was not one of them. It ....

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....eline Poultry Stock' used in the above Notification has therefore to be strictly construed. In this manner of interpretation, the classification specified for the goods in the Notification must also have a say. In other words, the question to be considered is in the nature of whether Emu birds classifiable under Chapter 1 of the Tariff Schedule could be recognized as 'Pureline Poultry Stock'. We have come across a sub-heading for 'Pureline Stock' under Heading 01.06 of the new Tariff, which throws light on the fact that domesticated birds (like Emu) covered by 'other birds not specified in Heading 01.05', one of the sub-divisions under HSN Heading 01.06, can very well be brought within the ambit of "pureline stock", subject, of course, to e....