AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (2) TMI 1289
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....0 of the Customs Tariff Act, 1975. The said import consignment was subjected to 100% examination and it was found that the imported goods contain 260 cartons of "Gun shape Metal Cigarette Lighters". The Customs Examining Officer of the Navkar Corporation Ltd., Container Freight Station(CFS) had come to a conclusion that such goods are covered under the definition of replica of arms as defined in 'Section 6A of the Weapons Act, 1990'(as mentioned in the Seizure Memo, instead of "Arms Act, 1959") thus requiring license from appropriate authority. In the absence of any valid license covering such imported goods, the department had seized the imported goods under a Seizure Memo dated 27.11.2021. The customs examination officers had drawn samples of gun shaped metal Sealed cigarette lighters and forwarded the same to the assessment group for further action. 2.3 It was observed by the customs assessment group officers that the gun-shaped metal cigarette lighters appear to be suspicious on its primary function of being used as a lighter, since it was found that the brand name of manufacturers of guns/pistols were mentioned on such lighters and the declared value of the goods was low at....
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....izure memo dated 27.11.2021 itself is illegal and the same is void ab initio. 3.2 He further submitted a copy of the Order-in-Original dated 26.07.2024 passed by the Additional Commissioner of Customs in charge of the same Customs Assessment Group VI of the JNCH Customs Commissionerate-V, wherein similar goods of description 'Pistol shape lighters' bearing the brand name of original gun/pistol manufacturer have been cleared by enhancing the assessable value of such goods and no objection with respect to licensing of such imported goods were raised in such imports. Therefore, he submitted that import of gun shaped cigarette lighters in their case is permissible in law and therefore the impugned order confirming the confiscation and imposition of penalty under the mistaken impression of it being covered under Section 6A of the Weapons Act, 1990, is liable to be set aside. He further submitted that the Department had no documents or placed any evidence to claim that the imported goods are comparable with the actual guns to claim that it is a replica. Further, he also stated that there is no import restrictions under Section 5 of the Arms Act, 1959 nor there is any corresponding res....
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....isions clearly indicate that imported goods are liable for confiscation under Section 111 (d) of the Customs Act, 1962, only if 'import' of such goods is prohibited under the relevant legislation is in force. Similarly, if the imported goods do not correspond in respect of value or other particulars declared therein, then such goods are liable for confiscation under Section 111 (m) ibid. For deciding whether such provisions of Section 111(d) ibid is applicable or not, firstly, we may examine the imported goods, with respect to declared classification under CTI 9613 2000 and then as per the department's claim under Chapter 93 covering Arms and Ammunition. 8.1 In order to examine, whether the imported items in the impugned case are prohibited or not, we may refer to the relevant legislative provisions containing restrictions on import or export of goods as are specified in the ITC-HS item-wise import policy of Foreign Trade Policy in force at the time of import, issued under the Foreign Trade (Development and Regulation) Act, 1992. The extract of the relevant item is ITC-HS for the impugned goods along with the amendments introduced w.e.f. 29.06.2023 are given below: IT....
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....; 4 Policy for import of Air Gun Pellets is free. 5 Despite the policy for Arms and related material as is given in this Schedule, the import of arms and related material from Iraq shall be Prohibited Product Description and Import Policy HS Code Description Import Policy Policy Condition Notification No. Notification Date 9301 MILITARY WEAPONS, OTHER THAN REVOLVERS, PISTOLS AND THE ARMS OF HEADING 930110 Artillery weapons (for example, guns, howitzers and mortars) 93011010 Self-propelled Restricted 93011090 Other Restricted 930120 Rocket launchers; flame- throwers; grenade launchers; torpedo tubes and similar projectors 93012000 Rocket launchers; flame- throwers; grenade launchers; torpedo tubes and similar projectors Restricted ....
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....ited However, import is "Free" if CIF value Is Rs. 20/- or above per lighter 15/2023 29/06/2023 961300 - Other lighters 96130010 - Electronic Free 96130090 Other Free The ITC-HS relevant for the cigarette/pocket lighters as provided under CTI 96132000, prescribe that the imports are allowed 'free' subject to the condition that the CIF value of imported lighters shall be at Rs.20 or above per lighter. In other words, where the import of lighters is having CIF value less than Rs.20 per lighter, then it is prohibited. This restriction in respect of lighters were prescribed vide Notification No.15/2023 dated 29.06.2023. Since, the goods have been imported vide B/E No.01.11.2021, prior to the amendment to the import policy under Notification dated 29.06.2023, and that it has expressly provided that the import policy has been revised from "Free" to "Prohibited" as per restrictions w.r.t. value per lighter as discussed above, I am of the clear view that the imported goods herein classifiable under CTI 9613 1000 and CTI 9613 2000 are freely import....
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....ion 6A of the Weapons Act, 1990 of the Queensland, a State in North Eastern Australia. Though, I would not like to deal with such provisions as these do not relate to the legislations governing import into India, to the extent that these have been quoted by the authorities below right from the stage of seizure of the imported goods on 27.11.2021 vide Seizure Memo, through the Customs assessment, departmental adjudication process by the learned Deputy Commissioner of Customs, JNCH, Nhava Sheva and till the first appellate stage vide the impugned order, it is felt necessary at least to highlight such reckless manner in which the legal provisions are viewed for coming to an conclusion about the liability for confiscation of goods by the authorities below. 8.5 The relevant extract of the said Section 6A of the Weapons Act, 1990 of the Queensland, which inadvertently came to my notice, is captured as snapshot and given below: 8.6 In view of the non-applicability of the definition given for 'replica of weapon' in some other Act of a foreign country and such definition not available in the Arms Act, 1959, I am unable to accept the stand taken by the authorities below, in concluding ....
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....by Section 3 and Section 5 of Foreign Trade (Development & Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government amend the import policy condition for the following HS Codes covered under Chapter 96 of the ITC (HS), 2022. Schedule -I (Import Policy) as under: HS codes Item Description Existing Policy Revised Policy New Policy Condition 96131000 Pocket lighters, gas fuelled, non- refillable Free Prohibited However, import "Free" if CIF value is Rs. 20/- or above per lighter 96132000 Pocket lighters. gac fuelled, rofillablo Free Prohibited However. import is "Froo" if CIF valuo ic Rc. 20/- or above per lighter 2. Effect of the Notification: The import policy of Cigarette lighters under ITC (HS) Codes 96131000 and 96132000 is revised from "Free" to "Prohibited". However, import shall be free if CIF value is Rs. 20/- or above per lighter. This issue with the approval of Minister of Commerce & Industry. (Rajesh Agrawal) Director General of Foreign Trade & Addl. Secretary to Govt. of India Email: dgtt@@nic.in (Issued from File No. 01/93/180/misc.39/AM-20/PC.II(B) /E-22950) ....