2009 (4) TMI 685 - AT - Customs

Summary

Issues Involved:
Import of second-hand photocopiers, valuation dispute, confiscation of goods, penalty imposition, applicability of Customs Act, re-determination of redemption fine and penalty.

Analysis:

Import of Second-hand Photocopiers:
The appellants imported second-hand photocopiers, and the declared value was not accepted. The Revenue contended that the goods are liable for confiscation as they are considered restricted items. The appellants did not dispute the valuation issue but contested the impugned orders based on a Supreme Court decision regarding the classification of second-hand photocopiers as second-hand capital goods before a specific restriction date. The Tribunal noted that the import was made before the restriction date, making them not liable for confiscation under Section 111(d) of the Customs Act.

Valuation Dispute and Confiscation:
The Revenue argued that the appellants misdeclared the goods concerning valuation, which was not contested by the appellants. The Revenue claimed that the goods were liable for confiscation under Section 111(m) of the Customs Act due to misdeclaration. The Tribunal observed that the goods were confiscated both for under-valuation and being a restricted item. Citing a Supreme Court case, the Tribunal emphasized that second-hand photocopiers imported before a specific date were considered second-hand capital goods and not liable for confiscation on that ground.

Penalty Imposition and Re-determination:
Given the circumstances, the Tribunal concluded that the issue of redemption fine and penalty due to under-valuation needed re-determination by the adjudicating authority. The matter was remanded to the adjudicating authority for a re-assessment of the redemption fine and penalty related to under-valuation. The appeal was disposed of accordingly.

This detailed analysis of the judgment provides insights into the issues of import, valuation dispute, confiscation, penalty imposition, and the need for re-determination of fines and penalties based on legal interpretations and precedents cited during the proceedings.