Case Law Details
SDS Ramcides Crop Science Pvt. Ltd. Vs Commissioner of Customs (CESTAT Chennai)
Introduction: The CESTAT Chennai has delivered a verdict in the case of SDS Ramcides Crop Science Pvt. Ltd., related to the import of insecticides without a registration certificate. The original authority ordered the confiscation of the goods with an option for re-export on payment of redemption fine and imposed penalties. SDS Ramcides contested the fine and penalties, seeking relief from the tribunal.
Analysis: SDS Ramcides imported insecticides declared as “Cartap Hydrochloride Technical 98%” and “Paraquat Diochloride 42% Technical” without a valid registration certificate, as mandated by the Insecticides Act, 1968. The central issue was whether the goods could be considered misbranded under the Act due to the lack of registration. The tribunal examined the case, considering that the goods were actually manufactured by the authorized companies but routed through distributors. SDS Ramcides argued that there was substantial compliance with registration requirements.
In its own previous case, CESTAT Chennai had set aside redemption fine and penalties on identical facts and imports. The tribunal emphasized that the main purpose of registration was to ensure the quality of insecticides used on crops. The invoices and documents presented indicated that the goods originated from the manufacturers as stated in the registration certificates.
Conclusion: The CESTAT Chennai ruled in favor of SDS Ramcides Crop Science Pvt. Ltd., setting aside the redemption fine and penalties. The tribunal recognized the goods’ actual source from the manufacturers mentioned in the registration certificates and considered the violation as technical and not justifying punitive measures. SDS Ramcides will be permitted to re-export the goods without paying the fine or penalties.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
