CHENNAI MARINE TRADING PVT. LTD. Vs. CC

JUDGEMENT

(1.) THE issue involved in this case is regarding the confiscation of the goods under Section 111(d) of the Customs Act, 1962 and imposition of the penalty under Section 112(a) of the Customs Act.

(2.) THE relevant facts that arise for consideration are that the appellant imported a consignment of Freon 22 (Ship stores) from Dubai, UAE and filed ex -bond bill of entry for clearance of the said goods without payment of duty. The customs authorities felt that the said imports fall under the category of restricted items and on obtaining the analysis report of the said product the authorities issued a show cause notice for confiscation of the said goods and for imposition of penalty. The adjudicating authority confiscated the imported goods and also imposed a penalty on the appellant. On an appeal the appellate authority concurred with the views of the adjudicating authority and upheld the order -in -original. Hence this appeal.

(3.) THE learned advocate appearing for the appellant submits that the lower authorities have not correctly appreciated the facts. It is his submission that the appellant has supplied the imported goods as ship stores and such supplies are exempted from operation of the Rules governing the procurement of license. It was also further submitted that the goods were supplied to outgoing vessel as required in the Clause 3(2)(b) of the Foreign trade (Exemption From application of Rules in certain Cases) Order 1993. It was also his submission that since the word 'outgoing' is not defined in the EXIM policy dictionary meaning has to be relied upon.