TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1814
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....lieu of confiscation of 449 gas cylinders and rest of the appeal was rejected. 2. The facts of the case in brief are that various cylinders of gases viz. Carbon Dioxide, Acetylene etc. are imported in ships brought for breaking. However, such cylinders are restricted for import in terms of Gas Cylinders Rules, 2004 as amended and therefore, they are required to be scrapped before being sold by the importers i.e. Ship Breakers. Such ship breakers file undertaking with Customs department wherein they inter alia, undertook that all such cylinders shall neither be sold as such nor would be used for further refilling by them. That all such empty gas cylinders shall be destroyed by them by following the procedure prescribed by the Department o....
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....se Notice was adjudicated by the Adjudicating Authority vide Order-in-Original dated 25.04.2018. He ordered for absolute confiscation of six Freon gas cylinders and confiscation of rest 449 Carbon Dioxide gas cylinders with an option to redeem the same on payment of redemption fine of Rs. 3,00,000/- under Section 125(1) of the Customs Act, 1962. Penalty of Rs. 15,000/- was imposed on the appellant under Section 112(b) of the Customs Act, 1962. Aggrieved by the Order-in-Original dated 25.04.2018, the appellant filed appeal before Commissioner (Appeals). The Commissioner (Appeals) reduced the redemption fine imposed in lieu of confiscation of 449 gas cylinders from Rs. 3,00,000/- to Rs. 1,40,000/- and rejected rest of the appeal. Feeling aggr....
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....essary permission for clearance of the imported goods i.e. they have been granted 'out of charge'. by the Customs authorities. Hence the appellant has not contravened the provisions of Section 111(j) of the Act. There is no dispute that the old and used empty cylinders of gas are not prohibited. The cylinders obtained by breaking up of old and used ship after the payment of Customs duty by the importer, do not fall under the definition of dutiable goods. Therefore, there is no charge of short levy or non-levy of the duty. The Bill of Entry filed by the appellant were assessed by the proper officer and duty was paid. Section 111(j) of the Act indicate that it will be applicable in cases where there is deliberate removal of unaccounted goods ....
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....linders without valid license are prohibited goods, as condition of having license was not complied with. The importers have not imported any extra or additional goods and as such seized Carbon Dioxide cylinders were not imported by the ship breakers. The Adjudicating Authority and the learned Commissioner (Appeals) failed to appreciate the legal provisions and therefore, the impugned Order-in-Appeal is liable to be set-aside and the appeal may be allowed. 4. Learned AR for the department submitted that the grounds taken by the appellant cannot be accepted that Order-in-Appeal is non-speaking and non-reasoned order and no findings have been recorded on the submissions made by the appellant. He submitted that bare perusal of Order-in-Orig....
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....d without valid license. The gas cylinders received along with the ship being brought for breaking, were required to be destroyed/disposed of by following the procedure under Gas Cylinder Rules, 2016 and other Rules/Regulations. From the Panchnama made by Shri Jacob Chirayil Devasia, it is evident that the said cylinders seized from his business premises were not destroyed but removed illicitly as such from the Ship Breaking yards by various ship breakers. Therefore, the adjudicating authority has correctly held that the cylinders were liable for confiscation under Section 111(d) and Section 111(j) of the Customs Act, 1962. Once the goods have been held liable for confiscation, penalty may be imposed under Section 112(a) and (b) on the appe....