Newby Teas Overseas Private Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, examined an appeal filed against the imposition of a penalty of ₹2,15,000 under Section 112(a)(i) of the Customs Act, 1962. The appellant had imported 10 varieties of tea under an Advance Authorization for the purpose of processing and re-export. Upon import, samples were drawn and tested by the Plant Quarantine Authorities, who found that the consignment contained viable seeds and was infected with quarantine pests as per the Plant Quarantine (Regulation of Import into India) Order, 2003. Consequently, a No Objection Certificate was denied, and the matter proceeded for adjudication.
The adjudicating authority confiscated the goods under Section 111(d), permitted re-export upon payment of redemption fine, and imposed a penalty. On appeal, the Commissioner (Appeals) set aside the redemption fine and allowed re-export without fine but upheld the penalty. The appellant challenged only the penalty before the Tribunal.
The appellant contended that tea is not a prohibited item and that the import was made under a bona fide belief that the goods were fit for consumption, supported by Health and Phytosanitary Certificates issued by the Government of China. It was further submitted that China prohibits export of seeds, and the presence of seeds and pests was detected only after testing by Indian authorities. The appellant argued that there was no misdeclaration in the description or quantity of goods and sought waiver of the penalty.
