2006 (3) TMI 516 - AT - Customs

Summary

Issues:
1. Valuation of imported Second-Hand Photocopiers certified by Chartered Engineers.
2. Rejection of certified values by original authority.
3. Confiscation of goods under Customs Act.
4. Requirement of license for import of used Photocopiers.
5. Appeal against confiscation decision.
6. Applicability of policy Circulars and Tribunal decisions on import of Second-hand Photocopiers.

Analysis:
1. The appeals were filed concerning the valuation of Second-Hand Photocopiers imported by the appellants, which were disputed by the Department. Chartered Engineers certified the values after inspection, but the original authority rejected these values. Two Chartered Engineers, M/s. SGS India Pvt. Ltd. and M/s. Moody International (India) Pvt. Ltd., were engaged. The original authority determined values using the deductive method and imposed penalties and fines, leading to challenges by the appellants.

2. The learned Advocate argued that the original authority arbitrarily determined values and did not provide sufficient reasons for rejecting the certified values. The Advocate cited a Supreme Court decision and a Larger Bench decision stating that second-hand photocopiers did not require a license during the relevant period. The Advocate contended that the decision was challenged by Revenue in the High Court but was dismissed.

3. Upon careful review, the Tribunal found that the detailed certificate issued by M/s. Moody International (India) Pvt. Ltd. should be accepted for valuing the imported photocopiers. The Tribunal noted that the rejection of this detailed report without proper discussion was unjustified, especially when a Chartered Engineer had provided a thorough inspection report.

4. Regarding the requirement of a license for importing used Photocopiers, the Commissioner (Appeals) set aside the confiscation, stating that Photocopier assemblies were freely importable. The Tribunal referenced a decision by a Larger Bench that second-hand photocopiers could be imported without a license under the relevant Foreign Trade Policy, overruling previous decisions relied upon by Revenue. The Tribunal also noted that Revenue's appeal challenging the decision was dismissed by the High Court, leading to the dismissal of Revenue's appeals.

5. In conclusion, the Tribunal ordered that the value certified by M/s. Moody International (India) Pvt. Ltd. should be adopted for assessing the value of the imported goods and dismissed Revenue's appeals, as they lacked merit based on the Tribunal's analysis and the relevant legal precedents.