SAMEER INDUSTRIES Vs. COMMISSIONER OF CUSTOMS, KANDLA

JUDGEMENT

(1.) ALL the appeals are being disposed off by a common order as they arise out of the same impugned order passed by the Commissioner, vide which he has confiscated the scrap imported by M/s. Sameer Industries, M/s. Raja Zinc Pvt. Ltd., and M/s. Metal Link Alloys Pvt. Ltd. In respect of other appellants, the penalties stand imposed upon them in terms of provisions of Section 112(a) of the Customs Act, 1962, on the ground that the consignment of imported scrap was not accompanied by a pre -shipment inspection certificate. We shall be dealing separately the two issues involved.

(2.) ALL the appellants imported various types of scraps viz. Aluminum scrap, Copper scrap, Brass scrap, Steel scrap etc. and cleared the same to various actual users in DTA. In respect of M/s. Sameer Industries, M/s. Raja Zinc Pvt. Ltd., and M/s. Metal Link Alloys Pvt. Ltd., the copper cable scrap druid grade, stand confiscated by the Commissioner, on the ground that the said appellant did not have the valid import licences from DGFT and they also imported the goods in contravention of provisions of Hazardous Waste (Management and Handling) Rules, 1989, as they were not registered with Central Pollution Control Board (CPCB). Similarly, the plastic scrap imported by M/s. Raja Zinc stand confiscated on the ground that the same required a specific licence from DGFT and as plastic scrap is also covered under Hazardous Waste (Management and Handling) Rules, 1989, DGFT licence is a pre -condition for import of such plastic scrap.

(3.) ARGUING on behalf of M/s. Raja Zinc Pvt. Ltd., and M/s. Metal Link Alloys Pvt. Ltd., the learned advocate draws our attention to Chapter 74 of ITC(HS) classification of export/import items. Heading 7404 00 19, under which the druid grade copper scrap stand classified by the authority, shows the policy condition as restricted import and permitted as per licencing note. The import licencing notes is to the effect that the import of copper wire covered under IRSI Code druid is permitted without licence to unit registered with Ministry of Environment and Forest. As such, submits the learned advocate that inasmuch as M/s. Raja Zinc Pvt. Ltd., and M/s. Metal Link Alloys Pvt. Ltd., are the units which were admittedly registered with CPCB for obtaining and processing for specified items listed in their registration certificate, the condition of production of licence was not required to be adhered to by them. He draws our attention to the observations made by the Commissioner, wherein he admits such registration, but held that inasmuch as no valid licence for import of hazardous waste from DGFT was produced, the goods are liable for confiscation.