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Dated: 19.02.2025

Customs Tribunal Overturns Confiscation of Gun-Shaped Lighters, Cites Misinterpretation of Law

The Customs Tribunal has overturned the confiscation of gun-shaped metal cigarette lighters imported by S.F. Trading, ruling that these items are not classified as prohibited “replica of weapons” under Indian law. The tribunal highlighted errors in applying foreign legal provisions, clarifying that the lighters function as intended and do not violate import restrictions.

Background of the Case:

S.F. Trading Company, Mumbai, imported a consignment of miscellaneous items, including gun-shaped metal cigarette lighters, under Bill of Entry No. 6092892 dated November 1, 2021. The consignment was examined, and customs officials at Nhava Sheva-V Commissionerate deemed the lighters as “replicas of arms” under Section 6A of the Weapons Act, 1990, leading to their seizure on November 27, 2021.

The Customs Department held that:

• The gun-shaped lighters resembled real firearms and required a valid license for import.
• The import violated Section 111(d) of the Customs Act, 1962 (prohibiting restricted/prohibited imports).
• The consignment was confiscated absolutely, and the company was penalized under Sections 111(m) and 112(a) for misdeclaration of goods and undervaluation.

The Commissioner of Customs (Appeals) upheld the confiscation and penalties, prompting S.F. Trading Company to appeal before CESTAT, Mumbai.

Key Arguments by the Appellant (S.F. Trading Company):

1. Non-Existent Weapons Act, 1990:

• The Customs Department wrongly referred to a “Weapons Act, 1990”, which does not exist in Indian law.
• The seizure was invalid as it was based on an incorrect legal provision.

2. No Legal Restriction on Import:

• Gun-shaped cigarette lighters are not classified as “firearm replicas” under the Arms Act, 1959.
• There are no licensing requirements under the ITC-HS Import Policy for such lighters.

3. Precedents and Similar Import Cases:

• A similar consignment of pistol-shaped lighters was cleared by Mumbai Customs in July 2024 without licensing issues.
• The Department had no concrete evidence proving the imported goods functioned as firearms or closely resembled actual guns.

Key Observations by CESTAT:

1. Incorrect Legal Basis:

• The Customs Department erroneously applied Section 6A of the Weapons Act, 1990, which is not part of Indian law but rather a law from Queensland, Australia.
• This invalidates the seizure and confiscation order.

2. No Import Restriction on Gun-Shaped Lighters:

• The applicable ITC-HS Import Policy only restricts cigarette lighters valued below Rs. 20 per piece (introduced in June 2023).
• Since the import took place in 2021, no such restriction applied at the time.
• The tribunal concluded that the imported goods were freely allowed under Indian law.

3. No Proof of Goods Being a “Firearm Replica”:

• The Arms Act, 1959 defines a firearm replica as “an object that is indistinguishable from a real firearm”.
• The gun-shaped cigarette lighters are designed for lighting cigarettes, and not for firing projectiles.
• Customs failed to prove the lighters were comparable to real guns or violated Section 5 of the Arms Act, 1959.

Final Verdict by CESTAT:

• Seizure and confiscation were illegal as they were based on incorrect legal provisions.
• The order of the Commissioner of Customs (Appeals) was set aside.
• S.F. Trading Company’s appeal was allowed, confirming that the imported gun-shaped cigarette lighters were not prohibited.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: CESTAT Mumbai

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