The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), set aside demand of redemption fine as the Pre-Shipment Inspection (PSI) Certificate furnished as per Appendix 28 of Foreign Trade Policy ( FTP ).
The appeal has been filed before the by the taxpayer, M/s. ARS Steels & Alloy International Pvt Ltdagainst the order passed by the Commissioner of Customs, whereby the First Appellate Authority has confirmed the findings of the Adjudicating Authority.
The Adjudicating Authority had inter alia held that the appellant had violated the provisions of Import Policy since the PSICertificate furnished by it was not as per Appendix-28 of the Foreign Trade Policy; that 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.
The issue is whether the PSI certificate submitted by the appellant-importer was sufficient compliance with Appendix-28 of FTP and that the authorities are justified in ordering confiscation and offering redemption fine in lieu of the same.
The Counsel for the appellant argued that the production of PSI certificate, which is issued by the Branch Office of the Inspection Agency whereas the Learned Deputy Commissioner for the Revenue seriously contends that the PSI certificate issued by the Branch Office is not figuring in the list in Appendix-28 of the FTP.
It is also a matter of record, inter alia, that when the goods in question were subjected to 100% examination, the same did not reveal any remnants of arms / ammunition or any such banned substances and that the DGFT itself vide Policy Circular No. 19/2004-2009 dated 18.02.2005 had made it clear that even a Branch Office of the Inspection Agency could get enlisted under Appendix-28 of FTP.
Setting aside the redemption fine the Tribunal of P Dinesha, Judicial Member observed that “. To put it in simple terms, the goods have not been imported contrary to any prohibition imposed by or under the Act or contrary to any prohibition imposed by any other law for the time being in force. This is because the import is subject to fulfilment of stipulated condition, failing which the only consequence prescribed is the 100% inspection of the entire consignment.”
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