Shah Foils Ltd Vs Commissioner of Customs (CESTAT Ahmedabad)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad, in the case of Shah Foils Ltd. vs. Commissioner of Customs, has set aside the confiscation, fine, and penalty imposed on an importer for failing to obtain Bureau of Indian Standards (BIS) certification for imported Prime Stainless Steel Hot Rolled Coils. The Tribunal ruled that the Stainless Steel Products (Quality Control Order), 2016, was not applicable to the consignment because the date of shipment (Bill of Lading date) preceded the effective date of the Quality Control Order.
CESTAT Quashes Penalty on Stainless Steel Import
The appellant, Shah Foils Ltd., imported Prime Stainless Steel Hot Rolled Coils Grade-201 and filed three Bills of Entry on March 7, 2017, for their clearance. The goods were valued at . The Stainless Steel Products (Quality Control Order), 2016 (QCO), which made BIS certification mandatory for specified stainless steel imports, came into force on February 7, 2017.
The Customs authorities held that since the Bills of Entry were filed after February 7, 2017, the imported goods required mandatory BIS certification. Based on this non-compliance, the Additional Commissioner of Customs ordered the confiscation of the goods under Section 111(d) of the Customs Act, 1962, allowed redemption upon payment of a fine of under Section 125, and imposed a penalty of under Section 112(a). The Commissioner (Appeals) subsequently upheld this decision.
