BIS Mark Not Mandatory for Imports Shipped Before QCO Effective Date: CESTAT Sets Aside Penalty [Read Order]
The Bench relied upon a Precedent laid down in Metro Bright Bar India Pvt. Ltd. to reach a Conclusion
![BIS Mark Not Mandatory for Imports Shipped Before QCO Effective Date: CESTAT Sets Aside Penalty [Read Order]](https://images.taxscan.in/h-upload/2025/11/17/2105970-bis-mark-imports-qco-cestat-penalty-taxscan.webp "BIS Mark Not Mandatory for Imports Shipped Before QCO Effective Date: CESTAT Sets Aside Penalty [Read Order]")
TheAhmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that Stainless Steel Products (Quality Control) Order, 2016 was not in force on the date of shipment (January 2017), and therefore, BIS marking was not mandatory for the imported stainless-steel cold-rolled coils.
The Tribunal consequently set aside the confiscation under Section 111(d) and penalty under Section 112(a) of the Customs Act, 1962.
The appellant, M A Trading Company, imported Stainless Steel Cold Rolled Coils (Grade-201) under Bill of Entry dated 16.02.2017. The Department insisted on BIS certification as per Steel Order SO 2061(E) dated 10.06.2016, as amended by SO 2903(E) and SO 3649(E), which collectively brought the Quality Control Order into force from 07.02.2017.
Since the consignment lacked BIS marking, the Department treated the goods as prohibited, initiated adjudication, and ordered confiscation under Section 111(d), redemption fine of ₹8,43,000 along with a penalty of ₹4,45,000 under Section 112(a). The Commissioner (Appeals) upheld the order, leading to the present appeal.
The assessee argued that the shipment took place on 27.01.2017, before the QCO came into force and under Para 2.17 of FTP 2015-20, the date of import is the date of shipment, not the Bill of Entry date. Further, as the Order was enforced only from 07.02.2017, BIS marking was not mandatory at the time of shipment. Reliance was placed on the CESTAT decision in Metro Bright Bar India Pvt. Ltd. (2020 (373) ELT 142), which took the same view.
The Department argued that the importer was aware of the QCO and was still required to comply with BIS obligations.
The Tribunal, chaired by Dr. Ajaya Krishna Vishvesha (Judicial Member) rejected the Revenue’s contention and noted that the Quality Control Order came into force only on 07.02.2017. It was observed that the goods were shipped in January 2017, when the Order was not yet operational.
The precedent in Metro Bright Bar squarely applied that goods shipped before 07.02.2017 are not subject to BIS marking requirements. Consequently, the confiscation and penalty were not legally sustainable.
As a result, the CESTAT Bench set aside the impugned order of the Commissioner (Appeals), thereby allowing the appeal of M A Trading Company.
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