TaxTMI 
TaxTMI 
2023 (11) TMI 489
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....bsp;No.(As per Invoice/packing list) CTH Qty.(in Pcs.) 1. Cannon (Decoration and Gift Articles, Replica Weapons for display purpose) 407 8306 29 90 8306 29 90 5 2 420 5 5 3 421 5 4 422 5 Panoplie (Decoration and Gift Articles, Replica Weapons for display purpose) 518 10 6 506 10 7 508 10 8 Cartridge Belt(Decoration and Gift Articles, Replica Weapons for Display purpose) 703 4203 40 90 5 9 707 5 10 704 5 11 708 5 12 701 5 13 Catapult (Decoration and Gift Articles, Replica Weapons for display purpose) ....
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.... 48 1124/C 8306 29 90 5 49 1125 5 50 Antique Finish Rifle (Decorative and Gift Articles, Replica Weapons for Display purpose) 113IC 8306 29 90 5 51 Antique Finish Rifle (Decorative and Gift Articles, Replica Weapons for Display purpose) 4139/L 5 52 4139/NQ 7323 99 90 5 53 4157/NQ 5 54 4157/N 5 55 4101/NQ 56 Antique Finish Sword (Decorative and Gift Articles, Replica Weapons for Display purpose) 4123 7323 99 90 5 57 4125/L 5 3. The said Bill of Entry was facilitated with RMS and was, therefore, neither prescribed for assessment nor for examination. The matter was forwarded to Special Intelligence and Investigation Bureo (SIIB) for investigation as similar cases of imitation /replica of ....
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.... "Assembled/kit, non-firing DENIX Replica Models should be used only in the home as scale model displays or collector's item or for theatrical or training purpose. They should always be used under supervision of a responsible adult. They should ER be carried on the street, pointed at anyone, hidden on your person or left carelessly in your car. Do not leave them where they are accessible to unsupervised children or irresponsible adults. The carrying, handling or brandishing in public of any model that resembles a real weapon may be in violation of the law, may create undue apprehension on the part of law enforcement officers or other persons, and could result in INJURY to the person handling the model. Be sure to check your local laws for any restrictions regarding replica guns." Information was also gathered from the website of the manufacturer www.denix.ex and it was found that they were involved in the manufacture of the following categories of goods:- "i. Novelties ii. Hangers iii. &n....
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.... to these circumstances, at this stage, the previous order would not ipso factory be the basis of disposing of the petition. Instead the petitioner should respond to the notice issued by the department and ensure participation, in the proceedings." 6. Considering the warning on the catalogue found along with the goods, FSL examination report dated 23.11.2015 from Balestic Division, FSL and also the information gathered from the manufacturers' website and the legal provisions, the Department issued show cause notice dated 15.06.2017 on the ground that the appellant made incorrect declaration of the description, value and classification of the imported goods in Bills of Entry No.7205764 dated 25.10.2016 and thereby, contravened the provisions of Section 46(4) of the Act read with Rule 11 of the Foreign Trade Regulation Rules, 1993 (as amended). The appellant imported "Replica Fire Arms" convertible into Fire Arms" classifiable under CTH 93040000, which was restricted as per ITC (HS) Import Policy, without any licence or authorization from the DGFT and also imported "daggers" and "swords" with blade size more than 9" without fulfillment of the requirements specifi....
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....vered under Bill of Entry No.7205764 dated 24.10.2016 under Section 111(m) of the Customs Act, 1962. However, I give an option to the importer to redeem the goods on payment of redemption fine of Rs.2,50,000/- (Rupees Two Lakh Fifty Thousand only) under Section 125(1) of the Customs Act, 1962. (vi) I confirm the demand of Customs duty amounting to Rs.3,66,275/- (Rupees Three Lakh Sixty Six Thousand Two Hundred Seventy Five only), on the goods mentioned at Sl.No.1 to 34 of the Table A in para-1 above, out of which Rs.1,93,381/- has already been paid by the importer on account of self-assessed duty. (vii) I order for appropriation of customs duty already paid amounting to Rs.1,93,381/- towards the demand of customs duty. I also order that, thus, importer is required to pay a differential duty amounting to Rs.1,72,894/-, under Section 28(1) of the Customs Act, 1962 along with applicable interest under Section 28AA of the Customs Act, 1962. (viii) I impose a penalty of Rs.50,000/- (Rupees Fifty Thousand only) on the importer i.e. M/s. Windlass Online Stores Pvt. Ltd. under Section 112 (a) of the Customs Act, 1962. (ix) I impos....
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....lenged the re-valuation of the goods on the ground that the Department has not compared the imported price to any identical or similar imports rather had simply relied on the suggested retail price on the internet by the manufacturer - supplier. Thus, purpose of contemporaneous exports having been ignored, the impugned order is bad and the goods in question could not have been confiscated by the department. 10. The learned Authorised Representative for the Revenue Ms. Jaya Kumari, vehemently opposed the appeal. Referring to HSN Explanatory Notes, she submitted that all type of arms, ammunitions and parts or accessories thereof including the replica arms are covered under chapter 93 whereunder even very pistol, revolver, gun and dummy/imitation/safety/warning pistols/revolvers /guns have been covered for classification. Therefore, irrespective of their state, (lethal or innocuous), category (prohibited, restricted, permissible standard or nonstandard) all kinds of arms are classifiable under chapter 93. She also referred to the provisions of the Arms Act, 1959 to say that as per the definition of "arms" under section 2 (1)(c), it excludes only those ....
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....irearms and the appellant has not produced any such license and hence the same is hit by the provisions thereof. On importability she referred to the conditions specified in the MHA Notification No. S.O.667 (E) dated 12.09.1985 and Notification No. S.O.83 (E) dated 02.08.2002 are fulfilled, i.e. obtaining the requisite license from the competent authority which the appellant failed to produce in respect of the goods in question, i.e., the swords or daggers for clearing them for home consumption. Lastly, she relied on the test report dated 10. 03.2017, which was obtained subsequent to the directions of the order of the High Court of Delhi and which in categorical terms stated the possibility of converting the replica firearms into non-standard firearms by improvisation cannot be ruled out. The learned Authorised Representative also relied on the findings of the Adjudicating Authority as under:- "28.7 ................................................................ I also find that during the investigations, as mentioned in para-19 above, it came to light that in respect of the goods detailed at S.No.35-44, 45-50, the importer in his e-mail communications with the over....