Custom
TRT-2025-
Cestat Chennai
Date:-18-01-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 18 January 2023
Parties: M/s. ARS Steels & Alloy International Pvt. Ltd. Vs The Commissioner of Customs, Chennai-II Commissionerate
Facts –
- The Appellant, M/s. ARS Steels & Alloy International Pvt. Ltd., filed Bill-of-Entry for clearance of goods declared as ‘Heavy Melting Scrap’.
- It was found that the Pre-Shipment Inspection (PSI) Certificate furnished by it was not as per Appendix-28 of the Foreign Trade Policy, and redemption of the goods in lieu of confiscation was allowed on payment of redemption fine and that a penalty was also imposed under Section 112(a) of the Customs Act, 1962.
Issue –
- Whether the PSI certificate submitted by the appellant-importer was a sufficient compliance with Appendix-28 ibid?
Order –
- The Hon’ble High Court held that the PSI certificate which was furnished was complete in all respects, except the fact that the same was issued by the Branch Office. This implies that the Revenue has recognized and accepted the Branch Office of the issuing agent, but does not want to accept the certificate issued by the Branch
- It is clear that there is no violation as alleged, more so because the PSI certificate issued by the Branch was subsequently ratified by the DGFT (as reflected in paragraph 25 of the Order-in-Original), which serves the purpose.
- The authorities haven’t found any improper importation of the goods resulting in confiscation of the same. This, ipso facto, therefore, would not tantamount to improper import of goods within the meaning of Section 111(d) of the Act. Consequently, the authorities below are not justified in demanding redemption fine and penalty under Section 112(a) of the Act.
- Hence the appeal is allowed.
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