Pre-Shipment Inspection Certificate is to be furnished at the Time of Clearance of Goods by Importer
Case Law Details
Caravel Logistics Private Limited Vs Commissioner of Customs (CESTAT Chennai)
Handbook of Procedures issued by the Directorate General of Foreign Trade (DGFT) dated 08.04.2005 (2004-09) requires, at paragraph 2.32, in the case of import in the form of metallic waste, scrap, etc., referred to therein, the furnishing of pre-shipment inspection certificate at the time of clearance of goods. Further, the Handbook of Procedures (Vol. I) with effect from 23.08.2010 (2009-14) also mandates the furnishing of pre-shipment inspection certificate at the time of clearance of goods, at paragraph 2.32.2. Further, there is no dispute that the FTP (2009-14), which is notified by the Central Government, is in exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992.
From the above, it is clear that the pre-shipment inspection certificate, as required, is to be furnished at the time of clearance of the goods by an importer and hence, any other person including a Steamer Agent has no locus to meet the above requirement. The responsibility was that of the importer, as prescribed, and in any case, the non-fulfilment of the above requirement would not ipso facto tantamount to declaring the goods as ‘prohibited’ under Section 111(d) ibid. This is because Section 111(d) could be invoked only when any goods are imported or attempted to be imported contrary to any prohibition imposed and in any case, it is not the case of the Revenue that the import of Aluminium Scrap was never prohibited under any law for the time being in force. Moreover, Revenue has not whispered anywhere if it was the duty of the Steamer Agent to seek clearance of any goods since it is the importer who is required to fulfil any obligations ‘at the time of clearance of goods’.
In view of the above penalty under Section 112(a) of the Customs Act, 1962, as levied and confirmed on the appellant, is not sustainable
FULL TEXT OF THE CESTAT CHENNAI ORDER
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