9911796707
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Issues:
Confiscation of goods for lack of import license, challenge to enhanced value, applicability of Foreign Trade Policy, reduction of fine and penalty amounts. Confiscation of Goods: The appellants imported goods without producing a license for clearance, resulting in confiscation with an option to redeem on payment of a fine and penalty. The Commissioner (A) upheld the adjudication order, leading to the appeal. The Tribunal upheld the confiscation based on the clear language of the Foreign Trade Policy, which allows the import of second-hand capital goods but not spares that are not reconditioned/refurbished. However, considering that the imported goods were used for drilling, the fine and penalty amounts were reduced to Rs. 1,20,000/- and Rs. 25,000/- respectively. Challenge to Enhanced Value: Although the appellants challenged the enhanced value of the goods in the appeal, they did not press this challenge during the arguments. The Tribunal noted this and focused on the issue of confiscation instead. The enhanced value of the goods was upheld by the Tribunal. Applicability of Foreign Trade Policy: The submission made by the appellants regarding the import of pipes without the need for a license under para 2.17 of the Foreign Trade Policy was not accepted by the Tribunal. The Tribunal emphasized that the policy allows the import of second-hand capital goods, including refurbished/reconditioned spares, freely. As the imported goods were not reconditioned/refurbished, the confiscation was upheld based on the policy's clear language. Reduction of Fine and Penalty Amounts: In light of the imported goods being used for drilling, the Tribunal decided to reduce the fine in lieu of confiscation to Rs. 1,20,000/- and the penalty to Rs. 25,000/-. This reduction was deemed appropriate while upholding the enhanced value of the goods. The appeal was partly allowed based on these considerations.
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