Judgment:
P. Karthikeyan
This is an application filed by M/s. DPB Antibiotics (DPB) for waiver of redeposit and stay of recovery of penalty of Rs.10,000/- imposed on them under Section 112 of the Customs Act (the Act). After hearing both sides on the stay application, we find that the appeal proper can be disposed without a further hearing. Therefore, we take up the appeal. The facts of the case are that DPB filed a Bill of Entry on 19.04.08 for clearance of 3000 Kgs. of Bronopol BP classifying them under CSH 29420090. After process of law, the original authority revised the classification to CSH 2905.59. As per the Exim Policy, import of goods falling under CSH 2905.59 are restricted and a specific license is required for their import. Moreover, the lower authorities found that the goods under import are an insecticide which is popularly used as a preservative in consumer goods like shampoo and cosmetics. Import of insecticides is allowed provided the importer registers the import with the Central Insecticide Board and Registration Committee (CIBandRC). The original authority had confiscated the consignment under import under Section 111 (d) of the Act as the importer did not possess a valid license required for import of goods falling under CSH 2905.5900 and as the importer had not registered with the CIBandRC as required under Insecticides Act, 1968. The impugned order has upheld the order of the original authority.
2. We find that there is no dispute that the goods under import are being used as a preservative by the importer who is engaged in the manufacture of pharmaceutical products. We find that as per Section 38 of the Insecticide Act, provisions requiring registration with the CIB and RC for import of insecticides do not apply to insecticides covered by the Schedule to the Act, when they are imported for non-insecticidal purposes. However, as the goods have been found to be classifiable under CSH 2905.5900, their import without license attracts provisions of 111 (d) of the Act. Even though the lower appellate authority has noted that the goods had been absolutely confiscated by the original authority, we find that the original authority had confiscated the goods and offered an option to the appellants to redeem the same on payment of a fine of Rs. 50,000/- besides imposing penalty. He ordered that the goods may be destroyed or cleared for export with the approval of the Commissioner on payment of fine and penalty. The appellants pray that they be allowed to pay the redemption fine ordered by the original authority and clear the goods for home consumption on payment of applicable duty and penalty. The revenue has not raised any valid objection to this prayer. In the circumstances, we allow the request of the appellants to redeem the goods on payment of fine and penalty and applicable duty as ordered by the original authority. Goods shall be released on the appellants producing clearance from the Assistant Drugs Controller concerned.