Custom
TRT-2025-
Cestat New Delhi
Date:-06-12-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 06 December 2022
Facts –
- The Appellant, M/s Ayyan Energy Resources (P) Ltd., imported good described as “Low Sulphur Waxy Residue (fuel oil)” in three containers from Bahrain which, on examination and testing was found to be “waste oil” which was included at S. No. 29 of Schedule VI of the Hazardous Waste (Management, Handling and Trans-boundary Movement) Rules, 2008. Import of this good was prohibited under Rule 13(4).
- Accordingly, a show cause notice dated 29.09.2010 was issued alleging that the appellant had knowingly and willfully misdeclared the imported good and imported it in violation of paragraph 2.7 of Foreign Trade Policy 2009-2014 read with Rule 13 (4).
- Goods were confiscated under section 111 (d) and 111 (m) and imposed penalty under section 112(a) of the Customs Act, 1962.
Issue –
- Whether the appellant had violated paragraph 2.7 of Foreign Trade Policy 2009-2014 read with Rule 13 (4)?
Order –
- The Tribunal observed that since import of the disputed good was prohibited, the Adjudicating Authority had the discretion to either allow redemption or not. In our considered view, the Adjudicating Authority has correctly exercised its discretion not to allow redemption of hazardous waste to the appellant and the Commissioner (Appeals) has, in the impugned order, correctly upheld it.
- The appellant’s request to re-export the goods also cannot accepted because, having been confiscated the imported goods vest with the Central Government as per section 126.
- Section 112 (a) of the Customs Act provides for penalty for acts or omissions which render goods liable to confiscation under Section 111. The amount of penalty imposed is Rs. 1,00,000/- which is fair and proper considering that the value of the confiscated goods is Rs. 10,98,772/-.
- The appeal is rejected.
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