ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 01.07.2025
CESTAT Mumbai Sets Aside Confiscation of Steel Scrap for Want of PSIC
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai set aside the confiscation order against M/s White Rock Industries LLP for importing Light Melting Steel Scrap without a valid Pre-Shipment Inspection Certificate (PSIC). The Tribunal directed that the consignment be inspected by an expert agency to determine its suitability for home consumption.
Background of the Case
M/s White Rock Industries imported a consignment of Light Melting Steel Scrap through Nhava Sheva Port, which was seized by Customs on the ground of non-submission of PSIC, as required under Para 2.51 of the Handbook of Procedure, FTP 2023, read with CBIC Circular No. 48/2016 and DGFT Trade Notice No. 19/2017.
The Additional Commissioner of Customs passed an order for:
- Absolute confiscation under Section 111(d) of the Customs Act, 1962,
- Imposition of redemption fine of โน60,000 for re-export under Section 125, and
- Penalty of โน1.7 lakhs on the importer and โน5,000 on the customs broker under Section 112(a).
The order was upheld by the Commissioner (Appeals), prompting the importer to appeal before CESTAT.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Mumbai
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