JAY INDUSTRIAL COMPANY Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THE appellants imported the following goods :

(2.) THEY are the traders and imported these goods in the belief that they are freely imported under EXIM Policy 1992 -97. They sought clearance of the same without producing any Import Licence.

(3.) RELYING on the definition of consumer goods and on examination of the goods, and as the importer produced Licence No. 3035246/205/94 with TRA issued from Air Cargo complex, Bangalore for the import of 3500 boxes Plastic pins for tags and for the other goods i.e., 500 spray guns, 10 Pcs Cloth cutting machines, 500 boxes S.S. Pins, 1500 Doz. thread cutters, 525 boxes needles and 1 foot massager they did not produce any import licence. These items were considered to require an import licence and were liable to confiscation under Section 111D of the Customs Act, as they were considered to be consumer items in terms of Para 156A of EXIM Policy 1992 -97 issued under Section 5 of Foreign Trade (D and R) Act, 1962. The Commissioner (Appeals) after hearing the party found as under : - A perusal of the catalogues produced by importers reveals that the foods imported satisfy human needs without further processing. As they are in the nature of consumer goods, the goods can be imported under a valid import licence only. As no licence was produced, the goods are liable to confiscation as indicated above. Further, the importer is not an actual user but a trader. The importer is also liable to penal action under Section 112 of the Customs Act, 1962 as the goods are liable for confiscation under Section 111(d) of the Customs Act, 1962. And thereafter ordered the confiscation of the offending goods under Section 111(d) of the Customs Act, 1962 read with Para 156A of the EXIM Policy 1992 -97 issued under Section 5 of Foreign Trade (D & R) Act, 1962 and allowed the importer to redeem the same on a fine of Rs. 45,000/ - under Section 125 of Customs Act, 1962 and imposed a penalty of Rs. 15,000/ - under Section 112 of the Customs Act, 1962. The Commissioner (Appeals) has after recording the items under import to be : -