MICRO LABS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE lower authorities have absolutely confiscated one lakh pieces of Clinical Thermometers imported by the appellants in April, 2005 and have also imposed a penalty of Rs. 30,000/ - on the importer. After examining the records and hearing both sides, I find that, in terms of DGFT's Notification No. 44/2000 dated 24 -11 -2000 (as amended), import of clinical thermometers into India could be made only where the supplier is registered with the Bureau of Indian Standards (BIS, for short). Clinical thermometers from suppliers who are not so registered are prohibited in India as per the above Notification. In the instant case, the supplier, admittedly, was not registered with the BIS, though a sample of the goods tested by the Central Scientific Instrument Organisation (CSIO, for short) was found to be conforming to the relevant standards IS 3055 (Part 2); 1988. In the circumstances, the Order of confiscation of the goods prima facie cannot be faulted and, for that matter, the penalty on the appellants is prima facie irresistible. learned Counsel has submitted that the goods worth over Rs. 12 lakhs are with the department and are enough security for the penalty amount. Learned SDR has opposed this plea. The confiscation is without option for redemption and, therefore, the goods have already vested in the Central Government by virtue of Section 126 of the Customs Act. Prima facie, the assessee cannot validly plead that the penalty imposed on them is secured by a Central Government property. In the circumstances, they are directed to pre -deposit the entire amount of penalty, which shall be. done within 4 weeks. Report compliance on 21 -7 -2006. The remaining application seeking early disposal of the appeal will be considered upon compliance.