Customs Act | 'Goods Already Re-Exported Cannot Be Confiscated': CESTAT Mumbai Sets Aside Absolute Confiscation Order

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Mumbai has set aside the absolute confiscation of imported goods ordered by the Commissioner (Appeals), holding that once the goods had already been re-exported prior to the filing of the Revenue appeal, the order for absolute confiscation of goods is not sustainable in law. The Bench of Member (Judicial) Ajay Sharma was hearing an appeal filed by the assessee challenging the Order-in-Appeal passed by the Commissioner(Appeal). The Bench stated that without taking into account that the re-export of the goods in issue had already taken place prior to the filing of the appeal by Revenue. Once the goods have been re-exported certainly they were not available for confiscation. As per settled position of law that where the goods are no longer available for confiscation, such confiscation cannot be ordered, except where they have been cleared under bond etc. which is not the case herein. The assessee, M/s Chemspark India Pvt. Ltd had imported 1600 Kgs of Zinc Pyrithione and 5000 Kgs of Sodium Coco Ampho Diacetate from China. During assessment, it was observed that Zinc Pyrithione is covered under the Insecticide Act, 1968, that requires mandatory permission from the Central Insecticides Board (CIB) under Section 9 of the Insecticides Act, 1968. Per Section 9 of the Insecticides Act, 1968, the assessee is to comply with pre-requisite registration of insecticides before they are manufactured, imported, or sold in India. The assessee failed to get the CIB permit of the objected goods, and thereafter requested the department to permit to re-export the objected goods to the overseas supplier. The Adjudicating Authority granted re-export of the objected goods on payment of the due Redemption fine and penalty. Aggrieved by the Order of the Adjudicating Authority, the revenue filed an appeal before the Commissioner (Appeal) whereby the Appeal was allowed without considering that the re-export had already taken place and held that the objected goods were prohibited goods and liable for absolute confiscation under Section 111(d) of the Customs Act, 1962 (Confiscation of improperly imported goods, etc.) Assailing the Order of the Commissioner(Appeals), the assessee preferred an appeal before the CESTAT. The CESTAT observed that the Commissioner(Appeals) failed to consider that the objected goods is already re-exported, and therefore, the order of the Commissioner(Appeals) does not sustain in law. In view of the above, the Bench allowed the appeal in the favour of the assessee setting aside the order of confiscation. Case Title: M/s Chemspark India Pvt. Ltd. vs. Commissioner of Customs, Nhava Sheva-I Custom Appeal No. 86827 of 2021 Appearances for Appellant: Shri Sandip Batwal, Advocate Appearances for Respondent: Shri L.B. D'Costa, Authorised Representative Click Here To Read/Download The Order

Customs Act | 'Goods Already Re-Exported Cannot Be Confiscated': CESTAT Mumbai Sets Aside Absolute Confiscation Order

Rajnandini Dutta

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