Case Law Details
Hardex Vs Commissioner of Customs (CESTAT Bangalore)
CESTAT Bangalore held that order of the lower authorities directing absolute confiscation and allowing redemption solely to re-export on payment of redemption fine and penalty is without any merit.
Facts- The appellant had filed a Bill of Entry for clearance of the imported good viz. industrial composite solvent by declaring its classification under CTH 38140010 which corresponds to the Heading ‘organic solvents and thinners, not elsewhere specified or included’.
Due to mounting demurrage and immediate requirement of the imported goods to be used in their own factory, for the manufacture of paints, the appellant waived issuance of show cause notice and attended personal hearing extended to them.
The adjudicating authority arrived at the conclusion that the classification of the said goods fall under CTH 27101920 which corresponds to “solvent 125/240(petroleum hydrocarbon solvent) as specified under standard IS 1745, and since the import was not canalized through authorized Agencies, hence import is in violation of the Import Policy, accordingly prohibited goods; he ordered absolute confiscation of goods u/s. 111 (d) and 111 (m) of the Customs Act, 1962, but allowed to redeem the same for the purpose of export on payment of redemption fine of ₹ 75,000/- under the provisions of section 125 of Customs Act, 1962; imposed penalty of ₹30,000/- u/s. 112 (a) of Customs Act, 1962.
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