2003 (1) TMI 391 - AT - Customs

Valuation - Second-hand computer monitors - Import policy, old and used goods - Import licence

Summary

Issues:
1. Enhanced value of imported goods
2. Confiscation of goods with redemption fine and penalty
3. Classification of imported goods as capital goods
4. Requirement of import license for used monitors

Enhanced Value of Imported Goods:
The appeal was filed by M/s. Dhara Enterprises against an Adjudication Order that increased the value of 2,000 imported second-hand monitors. The appellant declared the value at US $12.50 per piece, but the Commissioner enhanced it to US $16 per unit based on past cases and newspaper advertisements. The appellant argued that the transactional value should be accepted, citing a previous tribunal order valuing similar monitors at US $8 each. The tribunal found that the Department failed to show contemporaneous imports at the enhanced value, thus upholding the transactional value and rejecting the Commissioner's valuation.

Confiscation of Goods with Redemption Fine and Penalty:
The Adjudicating Authority imposed a redemption fine of Rs. 7 lakhs and a penalty of Rs. 70,000 on the imported monitors. The tribunal reduced the fine to Rs. 2 lakhs and the penalty to Rs. 40,000, deeming the initial amounts excessive. The monitors were held liable for confiscation under Section 111(d) of the Customs Act due to the absence of a valid import license for used monitors.

Classification of Imported Goods as Capital Goods:
The appellant argued that the monitors should not be considered capital goods and were not subject to confiscation. However, the tribunal disagreed, stating that import licenses are required for such used monitors and upheld the confiscation under the Customs Act.

Requirement of Import License for Used Monitors:
The Department argued that since no valid import license was produced for the used monitors, the import was unauthorized, justifying confiscation. The tribunal concurred, emphasizing the necessity of import licenses for importing used goods under the EXIM Policy.