2009 (3) TMI 858 - AT - Customs

Summary

Issues involved: The common issue in the judgment is the importability of old and used photocopiers without a specific license, leading to confiscation of goods under Section 111(d) of the Customs Act, 1962.

Importability of old and used photocopiers: The appellants imported old and used photocopiers without a specific license, resulting in confiscation of goods and imposition of penalties under Sections 111(d) and 112 of the Customs Act, 1962. The Customs authorities rejected the declared value of the goods, but the challenge did not concern the value. The key contention was whether the import of these goods required a license. The Tribunal accepted the importers' argument based on the Apex Court's judgment in M/s. Atul Commodities Pvt. Ltd. v. Commissioner of Customs, Cochin, which clarified that import of old and used photocopiers was not restricted before 19-10-05. The Tribunal emphasized that the import of such goods was only restricted after the mentioned date, as per Notification No. 31 dated 19-10-2005.

Interpretation of policy circulars and notifications: The judgment analyzed various policy circulars and notifications to determine the import restrictions on old and used photocopiers. It highlighted the distinction between "second-hand goods" and "second-hand capital goods" under the relevant policies. The Tribunal emphasized that import of second-hand capital goods, including old and used photocopiers, was allowed freely before the specified date. The judgment also underscored the significance of Notification No. 31 dated 19-10-2005, which explicitly restricted the import of photocopying machines only from that date onwards. The Tribunal concluded that the import of old and used photocopiers was covered under the concept of "second-hand capital goods" before the specified restriction date.

Decision and outcome: Based on the Apex Court's decision and its applicability to the present cases, the Tribunal set aside the impugned orders and allowed the appeals of the importers. The operative part of the order was pronounced on 30-3-2009. The judgment provided a detailed analysis of the legal interpretation regarding the import of old and used photocopiers, emphasizing the relevance of specific dates and notifications in determining the importability of such goods.