BROADWAY OVERSEAS LTD. Vs. CC, AMRITSAR

JUDGEMENT

(1.) THE appellant are a 100% EOU engaged in manufacture of aluminium and steel fence fittings for export. One of the items being imported duty free under Notification No. is HR Steel Coils/Strips. The appellant imported duty free coils at ICD, Ludhiana against the procurement certificates permitting them to import secondary/defective HR Steel Strips/Coil falling under heading 7209.90 free of duty under Notification No. dated 31/03/03 at this ICD. The Customs Authorities at Ludhiana, however, were of the view that since the goods imported are defective HR Coils and since in terms of licensing note No. 4 of Chapter 72 of the ITC (HS) the Import of Secondary/Defective Steel items i.e. HR Coils, HR Sheets, CR Coils/Sheets etc. shall be allowed only through the Customs Sea Ports at Mumbai, Chennai or Kolkatta and the imports of these consignments shall be accompanied by pre -shipment inspection certificates regarding description of the material, quality, chemical analysis of the material, visual inspection, thickness and width of the material, this consignment has been imported in contravention of the provisions of the ITC (HS) (Licensing Note No. 4 of Chapter 72). Accordingly, the Jurisdictional Additional Commissioner vide order -in -original dated 23/11/12 ordered confiscation of the goods valued at Rs. 39,42,127/ - with option to be redeemed on payment of redemption fine of Rs. 3,00,000/ - in lieu of the confiscation and beside this, penalty of Rs. 1,00,000/ - was also imposed. The goods, however, were allowed to be cleared duty free in terms of Notification No. . On appeal being filed to Commissioner (Appeals) against this order, the Commissioner (Appeals) vide order -in -appeal dated 19/03/14 upheld the Additional Commissioners order against which this appeal has been filed.

(2.) HEARD both the sides.

(3.) MS . Sweta Bector, the learned DR, defended the impugned order by reiterating the findings of the Commissioner (Appeals) and emphasized that when in terms of licensing note No. 4 of the Chapter 72 of the ITC (HS), the defective/secondary HR Coils/Strips could be imported only at the sea ports of Mumbai, Chennai and Kolkatta and not at any other port, their import at ICD, Ludhiana is contrary to the provisions of Exim policy, notwithstanding the fact that the procurement certificates permitted the appellant to import these goods at ICD, Ludhiana. She, therefore, pleaded that the goods have been correctly confiscated under the provisions of Section 111(d) of the Customs Act, 1962 and penalty has been correctly imposed on them under Section 112(a) of the Customs Act, 1962.