Peri (India) Pvt. Ltd. (the Appellant) imported old and used pipes declaring them as ‘old and used Prop Pep 20-300’ (Impugned goods) and classified them under Customs Tariff Heading (CTH) 7308 4000. The said classification was accepted and duty was demanded accordingly.
Since, these pipes were old and used, the Authorities held that Impugned goods are not covered under capital goods as defined in Para 9.12 of Foreign Trade Policy (“FTP”) and are not freely importable in terms of Para 2.17 of FTP 2004-09. Further, since no license for importation of the Impugned goods was produced by the Appellant, the Impugned goods were liable for confiscation and allowed to be redeemed on payment of Redemption Fine and penalty. Later, the Impugned goods were released but the Appellant relying upon the decision in the case of Cinda Engineering & Constructions P. Ltd. [2012 (289) ELT 509 (Tri-Bang)] (“Cindla case”)challenged the imposition of Redemption Fine and penalty before the Hon’ble CESTAT, Mumbai.Online GST Certification Course by TaxGuru & MSME- Click here to Join
The Hon’ble CESTAT, Mumbai allowed the Appeal and set aside the penalty and Redemption Fine with the following observations:
(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email: firstname.lastname@example.org)