Case Law Details
Jaiswal Import Cargo Services Limited Vs Commissioner of Customs (CESTAT Delhi)
CESTAT New Delhi has observed that assorted birthday candles with Chlorate, Potassium, Aluminium, etc., (material for fireworks) only in material contents of the central wig, are not classifiable as fireworks. The Tribunal for this purpose, relied upon Rule 3(a) of Interpretative Rules and the essential use criteria. It observed that if similarity of contents is the criteria, even matchstick is a firework. The Tribunal also held that although CHA is obligated with CBLR Regulations but not every breach leads to revocation of license.
FULL TEXT OF THE CESTAT JUDGEMENT
M/s. Jaiswal Import Cargo Services Limited, the appellant, is a Customs Broker with Shri Pawan Kumar Jaiswal as one of its Directors. Department observed the violation of Regulation 11(d) and (e) of CBLR, 2013 on the part of the appellant in a case of import of assorted birthday candles by M/s. Ess Enn Impex importer through M/s. S. Guha Sarkar & Co. Ltd. vide Bill of Entry No. 5222876 dated 11.05.2016. The Department after intercepting and examining the goods observed that the candles were described as sparkling taxguru.in flower candles. The central part thereof was found coated with brown coloured paste there upon. Department got it examined from Central Forensic Science Laboratory, (CFSL) New Delhi and from Petroleum and Explosives Safety Organisation (PESO). Based on the reports, the Department formed an opinion that the goods appeared to be classifiable under Chapter heading 3604 “fireworks, signalling flares, rain rockets, fog signals and other pyro-technic articles” whose import is restricted under the Foreign Trade Policy. Resultantly, a show cause notice No. 26/9 dated 02.02.2018 was served upon said importer, M/s. Guha Sarkar Co., their partner, the G-Card Holder and also upon the appellant proposing them to be held responsible for contravention of Regulations of CBLR, 2013 and proposing the revocation of their CB license with forfeiture of whole of the security submitted at the time of issue of their license.
Appellant was issued with the show cause notice after Department noticed that appellant’s two consignments of identical product (assorted birthday candles) had earlier been cleared through G-Card holder, Sh. Kuber Nath Rai. In furtherance of said show cause notice, the Order-in-Original cum offence report dated 13.12.2017 was prepared. The Additional Commissioner of Customs (Exports TKD), New Delhi ordered to seize birthday candles of the impugned bill of entry on the ground of holding them to be mis-declared however allowed the redemption thereof. In addition, the penalty on M/s. Ess Enn Impex, the partners thereof, Shri Kuber Nath Rai, G-Card Holder and on Customs Broker M/s. S. Guha Sarkar & Co. and also upon the appellant was imposed.
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