The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the order of confiscation with an option for redemption fine and penalty for importer not having IEC number is invalid under the provisions of the Customs Act.
Appellant imported “PIANO” for his personal use through CHA M/s. H. Mangaldas & Co. with permanent IEC number as prescribed for individuals (persons). The department initiated proceedings against the appellants as the said import was without an IEC number to which it responded by requesting a waiver of show-cause as the imported goods were not meant for sale in the market and imported for personal use.
Judicial Member Dr. Suvendu Kumar Pati held the restriction may be in a way prohibition but the same is not an absolute prohibition.
“The case laws cited by learned Counsel for the appellant Shri C.S. Biradar namely Stephen M. Fernandes Vs. Commissioner of Customs & Central Excise, Goa reported in 2018 (362) ELT 370 (Tri.-Mumbai) that there is no violation of procedure under Foreign Trade Policy if goods imported for personal use against Bill of Entry without having IEC code can be considered as more appropriate precedent that rules the field despite the fact that learned Authorised Representative distinguished it on the ground that Rule 31(I) of Foreign Trade Regulation is not taken into consideration and the value of enhancement is not discussed in the said judgment, in view of the fact that Circular No. 33/2010-Cus. dated 07.09.2010 on Courier Import & Export Regulations has clarified under para 3(iv) that in case of import of goods for personal use not connected with manufacture or agriculture, the permanent IEC number given under Hand Book of Procedure (Volume – I) notified by the DGFT may be used. Therefore, the order of confiscation with an option for redemption fine and penalty for importer/appellant not having IEC number is not sustainable in law and facts,” the Tribunal said.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
