Imposition of Redemption Fine on Re-Export of Imported Titanium Powder: CESTAT Remands matter to consider Response of DGFT
The CESTAT remanded matter to consider the response of the DGFTin the matter of imposition of redemption fine on re-export of imported Titanium Powder
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), remanded matter to consider the response of the Directorate General of Foreign Trade (DGFT) in the matter of imposition of redemption fine on re-export of imported Titanium Powder. The appellant-importerhad filed Bill-of-Entry No. 9045755 dated 10.06.2022 for clearance of the goods which are mentioned...
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), remanded matter to consider the response of the Directorate General of Foreign Trade (DGFT) in the matter of imposition of redemption fine on re-export of imported Titanium Powder.
The appellant-importerhad filed Bill-of-Entry No. 9045755 dated 10.06.2022 for clearance of the goods which are mentioned in ‘Table-A’ of the Order-in-Original. Out of the seven items, “Titanium Powder” appeared to be a restricted item as per the import policy, requiring licence from the DGFT for clearance of the same for home consumption.
The appellant requested the Deputy Commissioner of Customs to release the remaining cargo except Titanium Powder, for which an application for licence had already been made by them to the DGFT.
The adjudicating authority however, has only observed that the appellant had waived the Show Cause Notice and has proceeded to hold that Titanium Powder being a restricted item requiring DGFT licence for import and the importer having not produced the DGFT licence, the said goods were liable for confiscation under Section 111(d) of the Customs Act., however, also gave an option for redemption.
The Advocate submitted at the outset that Titanium Powder is only a restricted item, but not a prohibited item under the Customs Act and therefore, the authorities below have clearly erred in treating the same as a prohibited item thereby ordering confiscation of the same.
A Single Member Bench of the Tribunal of P Dinesha, Judicial Member observed that “I set aside the impugned order and remand the matter back to the file of the adjudicating authority, who shall await the response / order on the application for import authorization of restricted items filed by the appellant and then pass a de novo speaking order upon receipt of the said order from the DGFT. It goes without saying that the authority shall afford reasonable opportunities of being heard to the appellant before passing any de novo order.”
To Read the full text of the Order CLICK HERE
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