CUSTOMS, EXCISE AND GOLD (CONTROL) APPELLATE TRIBUNAL, MADRAS
S.L. Peeran, V.K. ASHTANA, JJ.
Diamond Traders -Appellant
Versus
Commissioner of Customs, Chennai -Respondent
Final Order No. 968/99 Appeal No. C/142/99, 968 of 1999, C/142 of 1999
Decided On : 07-05-1999
S. Murugappan,S. Kannan
Per V.K. Ashtana :
This is an appeal against Order-in-Original No. 11/99-CAU dated 8.3.99 passed by Commissioner of Customs confiscating poppy seeds imported from Pakistan and allowing by redemption fine of Rs. 11,00,000/- plus penalty of Rs. 1,00,000/- under Section 112A of the Customs Act, 1962.
2. Heard Shri Murugappan, Ld. Advocate for appellants who submits as follows:-
(a) The goods were imported in Nov. 98 and were accompanied by a certificate from the Export Promotion Officer, Export Promotion Bureau of Govt. of Pakistan certifying that the Foreign Exporters' Declaration was correct. This was corroborated by another certificate from the Chamber of Commerce & Industry, Karachi stating that the goods were legally grown in Pakistan and were therefore of Pakistani origin. A third certificate dated 29.10.98 was also submitted from the Quarantine Department at the Port of Karachi which has also been countersigned by the examining officer of Custom House, Karachi. This certificate also declares that the goods have been legally grown in Pakistan.
(b) Ld. Advocate also submits that Ld. Adjudicating authority on page 3 of the Order-in-Original impugned has himself come to a conclusion that merely because some packing material having Turkish markings, etc. it cannot be said that the goods was not of Pakistan origin.
(c) Ld. Advocate further submits that the only ground on which the goods have been held to be contraband is one Circular dated 30.11.98 which refers to Resolution dated 29.9.97 that Pakistan had banned export of Poppy seeds as no licit cultivation was taking place in Pakistan. Ld. Advocate submits that this was for the position obtaining in the year 1997 whereas the present imports are relating to 1998 and are covered by the certificates of both the Chamber of Commerce as well as the Govt. of Pakistan, duly countersigned by the Pakistan Customs authorities. Therefore, he submits that unless the department can proof that all these three certificates which corroborates one another are fraudulent or forged, they cannot be brushed aside only on the basis of a Circular of the International Narcotic Control Bureau (INCB).
(d) Ld. Advocate says that under Notification 25 (RE/98) the only condition for legally importing Poppy seeds is that the same should have been grown licitly. This has been amply evidenced by the three certificates submitted above.
3. Heard Shri S. Kannan, Ld. JDR who submits that as per the communication received by Govt. from the International Narcotic Control Bureau as mentioned in the Order-in-Original impugned, there is no licit cultivation of Opium from which Poppy seeds are derived in Pakistan. Therefore, any consignment of Poppy seeds certified as originating from Pakistan would ipso facto deemed to be not original. He further submits that the certificates produced by the importers are, therefore, of suspected veracity. However, it has not been able to get their accuracy verified. He also submitted that in some packs there was markings to show that the goods were of Turkish origin. He therefore submits that there is no infirmity in the Order-in-Original and the same should be upheld.
4. We have carefully considered the records of the case and the rival submissions. We find that the only ground on which the import of this Poppy seeds has been held to have contravened law is that as per a circular of the INCB mentioned in the Order-in-Original, Pakistan is recognised internationally a non-producer of licit Opium and therefore of poppy seeds.
5. As against this, we find that the matter is governed by the Notification No. 25 (RE/98) of the DGFT and this Notification requires that Poppy seeds imported should have been grown licitly and was to be certified by the Govt. concerned. We find that nowhere in this Notification there is any condition that these goods originating from Pakistan or Afghanistan would be deemed to be of illicit origin. There is also no condition in the said notification incorporating an