Case Summary: CESTAT Kolkata allowed the appeal filed by M/s. Jai Salasar Balaji Industries Private Limited, setting aside the confiscation of imported scrap goods and the associated redemption fine of ₹10,00,000 and penalty of ₹15,00,000 imposed under Section 112(a)(i) of the Customs Act, 1962. The Tribunal held that since a post-shipment inspection confirmed the goods met all safety parameters, a minor procedural discrepancy regarding the location of pre-shipment inspection did not justify penal action or confiscation. Key Legal Principles Established:

• Substance Over Form: When post-shipment inspection conclusively establishes that goods are safe, non-hazardous, and non-radioactive, a procedural deficiency in the Pre-Shipment Inspection Certificate (PSIC) does not warrant confiscation of goods.
• Purpose of PSIC: The primary objective of the PSIC requirement is to ensure public health and safety by preventing the import of hazardous materials; once this purpose is satisfied, the goods cannot be held liable for confiscation due to technical lapses.

Bench Matrix:

• Hon’ble Shri R. Muralidhar, Member (Judicial)
• Hon’ble Shri K. Anpazhakan, Member (Technical)

Appealing Advocates: Matter was represented by Shreya Mundhra.

---