TaxTMI 
TaxTMI 
2025 (10) TMI 832
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....sing a penalty of Rs.15,00,000/- under Section 112(a)(i) ibid. 2. The facts of the case are that the appellant imported namely, "LOW NICKEL TURNING SCRAP (1.30 NICKEL)" from Belgium vide Bill of Entry No. 4490495 dated September 13, 2025 filed at Customs (Port), Kolkata under CTH 72042990 of the Customs Tariff Act, 1975.The total quantity imported was 261.850 MT with an Assessable Value of Rs. 1,07,22,906.43 and total Customs Duty of Rs. 19,30,123/- was paid by the Appellant at the time of filing the Bill of Entry. The goods were consigned from Antwerp, Belgium as per Bill of Lading No. MEDURM588741. The goods were inspected at Duisburg, Germany by M/s. Melt Enterprise Ltd., a DGFT approved Pre-Shipment Inspection Agency (PSIA) as per Appendix 2G of the Handbook of Procedures, 2023. The Pre-Shipment Inspection Certificate (PSIC) No. psicmelxxx517038am86 dated June 11, 2025 was issued by M/s. Melt Enterprise Ltd. certifying that the consignment was checked for radiation levels and did not contain radiation levels (gamma and neutron) in excess of natural background. 3. A query was raised by the Assessing Officer on the ground that there was a discrepancy between the Port of Loa....
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....ntainers were opened and 100% physical examination was conducted; b. The examination was conducted in the presence of a Chartered Engineer, Shri Saikat Konar (Regn. No. M129095-3) from M/s. ELBI Consultancy (India) Pvt. Ltd., a DGFT approved PSIA, who was selected by AC/MCH Haldia for conducting Post-Shipment Inspection; c. The goods were inspected by the said agency and it was found that the radiation levels are well within the accepted range. d. The quantity and description of the goods are as per declaration; e. However, clearance was withheld on the sole ground that the place of inspection in the PSIC was Duisburg, Germany whereas the port of shipment was Antwerp, Belgium. 7.1. As directed by the Department, Post-Shipment Inspection was carried out by M/s. ELBI Consultancy (India) Pvt. Ltd., a DGFT approved PSIA listed in Appendix 2G of the Handbook of Procedures, 2023, on October 7, 2025 at Ralson Petro Chemicals Ltd., CFS, Haldia. The Post-Shipment Inspection Certificate dated October 8, 2025 was issued with the following findings: • The consignment was checked for radiation level (gamma and neutron) in excess of natural bac....
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....nd Section 17(1) of the Act by not producing valid PSIC. • However, in view of the Post-Shipment Inspection Certificate which certifies that the radiation level of the consignment is within the accepted range, the consignment is fit to be released on payment of suitable Redemption Fine and Penalty. 9.1. Based on the aforesaid findings, the ld. adjudicating authority has passed the following order:- "i. I hold that the impugned goods i.e., "LOW NICKEL TURNING SCRAP (1.30 NICKEL)" imported from Belgium vide Bill of Entry No. 4490495 dated 13/09/2025 under CTH: 72042990 having total Assessable Value of Rs. 1,07,22,906.43 and total Duty Rs. 19,30,123/- require PSIC as per the of Para 2.03 (a) of the Foreign Trade Policy (hereinafter referred to as "FTP"), 2023 read with the Para 2.51 of HandBook of Procedures, 2023. ii. I order for confiscation of impugned goods i.e.. "LOW NICKEL TURNING SCRAP (1.30 NICKEL)", having Assessable Value of Rs. 1,07,22,906.43 (Rupees One crore Seven Lakh Twenty-two Thousand Nine Hundred Six and Forty-Three paisa Only) imported under Bill of Entry No. 4490495 dated 13/09/2025 under the provision of Section 111 (d) of the Cus....
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.... case, the Appellant has furnished a valid PSIC No. psicmelxxx517038am86 dated June 11, 2025 issued by M/s. Melt Enterprise Ltd., which is a DGFT approved PSIA listed in Appendix 2G of the Handbook of Procedures, 2023. The said PSIC is in the prescribed format as per Appendix 2H and clearly certifies that the consignment was checked for radiation level and does not contain radiation levels in excess of natural background. Therefore, the Appellant has fully and completely complied with the requirements of Para 2.51 of HBP, 2023. 10.1. Accordingly, the Ld. Counsel for the appellant prayed for setting aside the impugned order and allowing their appeal. 11. On the other hand, the Ld. Authorized Representative of the Revenue argues that as per Para 2.54(d)(v)(iv) of the Handbook of Procedures, 2015-2020 as amended vide Public Notice No. 46/(2015-2020) dated 14.01.2022, it is mandatory on the part of the appellant to submit the Pre-Shipment Inspection Certificate (PSIC) from the country of origin; however, in the present case, the appellant has submitted a PSIC wherein the inspection was conducted in Germany while the Port of loading was in Belgium. Thus, it is his submission that ....
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....oms officials often break these seals and affix fresh seals after their own inspection. 8. The Metal Services Authorised Representative / Inspector subsequently sends the satisfactory inspection report to Metal Services Head Office, along with the loading photographs and copy of the Bill of Lading or Draft Bill of Lading, along with the radio-activity readings of the consignment inspected. 9. Based on the Metal Services Authorised Representative / Inspector's report, loading photographs and BL, Metal Services Head Office issues the Pre- Shipment Inspection Certificate and uploaded the DGFT Website from there importer or exporter can download the certificate. 10. The scanned copy of the PSIC issued is kept in Metal Services records for any future reference." 11.2. It is the submission of the Ld. Authorized Representative of the Revenue that the PSIC has been issued without following the above mentioned procedure and hence cannot be considered as valid. 11.3. The Ld. Authorized Representative of the Revenue vide their written submissions dated 15.10.2025, has inter alia submitted as follows: - (i) The consignment required mandatory Pre-Shipme....
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....that where statute requires an act to be done in a particular manner, the act has to be done in that manner alone (Para 5). Similar views have been expressed in the case of A.K. Roy Vs. State of Punjab ((1986) 4 SCC 326] and CIT Vs. Anjum M.H. Ghaswala ((2002) 1 SCC 633). Some latitude can be shown, if there is a failure to comply with certain requirements which do not affect the core intention for which the procedure was formulated le. by showing leniency in enforcing the provision, the direct nexus between the restrictions and the object of the action is not compromised. However, actions that nullify the procedure and pose a threat to men and material cannot be lightly dismissed." 11.4. In view of the above submissions, the Ld. Authorized Representative of the Revenue contended that the ld. adjudicating authority has rightly confiscated the goods and imposed redemption fine and penalties and prayed for rejection of the instant appeal. 12. Heard both sides and perused the appeal records. 13. We find that the issues to be decided in the present appeal are as under: - (I) Whether the Pre-Shipment Inspection Certificate (PSIC) issued by a DGFT approved Pre-Shipment ....
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....o.m129095-3) of ELBI Consultancy (India) Pvt. Ltd., approved dgft agency as well as in the presence of AC/MCH Haldia. As per exam order and dept comments. M/S Elbi Consultancy (India) Pvt Ltd, a DGFT approved agency was selected by AC/MCH Haldia vide e- file no. gen/1524/2023/mch-haldia-cus-port-kolkata for post shipment Inspection of the goods: goods were inspected by said agency and found that the radiation level are well within the accepted range(post shipment inspection oft uploaded in e-sanchit vide irn no. 2025100800142690). Also, verified that quantity and description of the goods are as per declaration. Clearance is withheld till further orders from group." 14.1. From the Post-Shipment Inspection Certificate dated 08.10.2025 issued by M/s. ELBI Consultancy (India) Pvt. Ltd., a DGFT approved PSIA, based on the Post-Shipment Inspection of the subject goods carried out by Chartered Engineer, Shri Saikat Konar, PSIA (ELBI Consultancy (India) Pvt. Ltd.) on 07.10.2025 at Ralson Petro Chemicals Ltd., CFS, Haldia as per the directions of the Department, the following inferences can be drawn: - • The consignment was checked for radiation level (gamma and neu....
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.... "5. Heard both sides at length and perused the records. There is no dispute that the consignment was inspected and not found to contain any incriminating materials. The purpose of PSI Certificate is that the consignment does not contain any types of arms, ammunition, mines, shells cartridges or any other explosive materials in any form used or otherwise and that the consignment was checked for radiation level and it does not contain radiation level (gamma and neutron) in excess of natural background. It is not the case of the Customs that the PSI Certificate filed by the importer does not furnish the aforesaid information, required to decide whether the said consignment should be prevented from import or not........." 14.6. We also find it relevant to refer to the judgement of the Hon'ble Gujarat High Court in the case of Commissioner of Customs v. Senor Metals Pvt. Ltd. [2009 (236) ELT 445 (Guj.)] wherein it was held as under: - "10. Section 11(d) of the Act permits confiscation of goods improperly imported, namely, any goods imported : (i) contrary to any prohibition imposed by or under the Act, or (ii) contrary to any prohibition imposed by any other law for the....