Goods can be Confiscated u/s 111(d) of Customs Act if it is Prohibited under Customs Act or Any Other Law: CESTAT [Read Order]

The Hyderabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the goods can be confiscated under section 111(d) of the Customs Act,1962 if it was prohibited under Customs Act or any other law. 

Sterling Agro Products, the appellant assessee imported Arecanut with declared assessable value vide Bill of Entry and claimed exemption under Notification. 

The assessee appealed against the order passed by the Commissioner for confirming the confiscation of prohibited goods and for the imposition of a penalty. 

Senthil Nathan, the counsel for the assessee contended that they are a 100% Export Oriented Unit, which was engaged in job work contracts along with a buy-back agreement with Reliance Products Pte Ltd., Singapore for manufacturing and supply of Arecanut powder and as per the contract, the buyer was to purchase and supply Arecanut to them without any consideration. 

Further submitted that the assessee were having the bonafide belief that their being 100% Export Oriented Units and the Minimum Import Price condition was not applicable and that the resulting goods were to be re-exported after manufacturing, to the overseas buyer. 

P. Amresh, the counsel for the department contended that there being no similar policy relaxation in respect of Arecanut, as was done in the case of pepper, the Minimum Import Price (MIP) condition applied to the imports by assessee despite them being an Export Oriented Unit. Since the imports were made below the MIP, the goods were like prohibited goods and liable for confiscation. 

The Bench observed that the goods can be confiscated under Section 111(d) of the Customs Act if it is prohibited under Customs Act or any other law for the time being in force. 

A single-member bench comprising A.K Jyothishi (Technical) held that the goods imported by the assessee were included in the prohibited list and the goods were liable for confiscation under section 111(d) of the Customs Act. 

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates