ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 05.09.2025
CESTAT Hyderabad Sets Aside Confiscation of Imported Stainless Steel Scrap
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Hyderabad, has delivered justice to Jindal Stainless Ltd by setting aside the confiscation, redemption fine, and penalty imposed by the Principal Commissioner of Customs, Visakhapatnam. This case highlights the importance of interpreting laws and policies in a practical and fair manner, especially when procedural challenges arise.
Background of the Case
Jindal Stainless Ltd, a leading steel manufacturer, imported 500.74 MT of stainless steel scrap of 304 grade from Turkey under two Bills of Entry dated December 3, 2014, and December 8, 2014. As per the Foreign Trade Policy (FTP) and Handbook of Procedures, metallic waste and scrap in unshredded, compressed, and loose form can only be imported if accompanied by a pre-shipment inspection certificate issued by an authorized agency. However, the Directorate General of Foreign Trade (DGFT) had not notified any agency in Turkey for such inspections. Faced with this practical challenge, Jindal Stainless Ltd obtained the certificate from M/s Worldwide Inspection Services – SARL, Benin, an agency authorized by DGFT but not specifically for Turkey.
Upon arrival at Visakhapatnam port, the imported scrap was examined by M/s Valueguru Chartered Engineers, Surveyors, Valuers, who issued a post-shipment inspection certificate confirming the goods were in order. Despite this, the Principal Commissioner of Customs confiscated the goods under Section 111(d) of the Customs Act, 1962, imposed a redemption fine of Rs. 40,00,000, and levied a penalty of Rs. 10,00,000 under Section 112(a).
Source: CESTAT Hyderabad
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