Custom, Excise & Service Tax Tribunal
M/S Orbit International vs Commissioner Of Customs (Mport), Nhava ... on 15 December, 2009
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH AT MUMBAI COURT NO. IV Appeal No. C/47/09 (Arising out of Order-in-Appeal No. 279/2008 dated 03.11.2008 passed by the Commissioner of Customs (Import), Nhava Sheva). For approval and signature: Honble Shri Ashok Jindal, Member (Judicial) ======================================================
1. Whether Press Reporters may be allowed to see : No the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? 2. Whether it should be released under Rule 27 of the : Yes CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? 3. Whether their Lordships wish to see the fair copy : Seen of the order? 4. Whether order is to be circulated to the Departmental : Yes authorities? ====================================================== M/s Orbit International Appellant Vs. Commissioner of Customs (Mport), Nhava Sheva Respondent Appearance: Shri Ravnider Jain Consultant for Appellant Shri P.K. Agarwal SDR for Respondent CORAM: SHRI ASHOK JINDAL, MEMBER (JUDICIAL) Date of Hearing: 08.12.2009 Date of Decision: 15.12.2009 ORDER NO. WZB/MUM/2009 Per: Shri Ashok Jindal, Member (Judicial)
This appeal is filed against the imposition of redemption fine and penalty on the appellants.
2. The facts of the case are that the appellants filed two Bills of Entry for Heavy Melting Scrap. These goods were purchased by the appellants on the High Seas Sale basis. The total quantity of goods was 125.54 MTs and the value was Rs.22,20,345/-. During the course of scanning of the container, the matter was referred to SIIB (Import) for further enquiry and investigation in the matter. The goods were examined physically and found 337.9 Kgs Plastic Scrap concealed under the cover of the metal scrap, which is a restricted item as per Licencing Notes to Chapter 39. Accordingly, the goods were confiscated and redemption fine of Rs.3,00,000/- was imposed under Section 125 of the Customs Act, 1962 and a penalty of Rs.2,00,000/- was imposed under Section 112(a) of the Customs Act, 1962.
3. The learned Consultant for the appellants submits that out of total quantity of 125.50 MTs only 337.9 Kgs of Plastic Insulated E-Wire, Plastic Strips and Computer PCB Scrap were found mixed in Heavy Melting Scrap, which amounts to only 0.27% of the total quantity imported. The Commissioner has also found that there is no requirement as such for the importer to import impugned hazardous waste of 337.9 Kgs concealed under HMS scrap as the same was neither economical nor they can make huge profits out of the impugned worthless waste. It was also found that it is quite possible that the supplier might have tried to dump the impugned waste by mixing with the present Metal Scrap. The learned Consultant further submitted that there was no mis-declaration on the part of the appellants. Moreover, there was no intention to import such scrap and it was only 0.27% of the total quantity, which is negligible one and further submitted that already a demurrage of more than Rs.20 lakhs has been amounted, so the redemption fine and penalty be waived.
4. On the other hand, the learned SDR submitted that plastic waste is a restricted item, which cannot be imported. It is a violation of Foreign Trade Policy and Customs law. The redemption fine and penalty have rightly been imposed and the learned SDR has prayed that the appeal be rejected.
5. Heard.
6. I find that although the appellants have not intentionally imported the plastic scrap/waste, but it is an item which is restricted in India and for such violation the appellants are required to be penalized. Considering the fact that the appellants have already incurred the detention/demurrage charges for more than Rs.20 lakhs, I am of the view that redemption fine and penalty should be reduced. Accordingly, I reduce the redemption fine from Rs.3 lakhs to Rs.50,000/- (fifty thousand) and penalty from Rs.2 lakhs to Rs.10,000/- (ten thousand). The appeal is disposed of with the above terms.
(Pronounced in Court on..) (Ashok Jindal) Member (Judicial) Vks/ 1