2005 (6) TMI 555 - AT - Customs

Summary

Issues:
Import of Second Hand Photocopying Machines without licence, rejection of Transaction Value, penalty and fine imposition, valuation based on Internet price, requirement of licence for importing Main Frame of Photocopier, penalty percentage on Transaction Value.

Analysis:

Issue 1: Import of Second Hand Photocopying Machines without licence
The appeals revolve around the import of Second Hand Photocopying Machines without a license, leading to confiscation of goods by the authorities. The appellants challenge the orders, citing the decision in Atul Commodities case, which upheld the import of second-hand Photocopier Machines as Capital Goods not requiring a license. They argue for the acceptance of Transaction Value based on lack of contemporaneous evidence and reliance on various judicial precedents.

Issue 2: Rejection of Transaction Value and Penalty Imposition
The learned Counsel contends that the rejection of Transaction Value based on Internet prices is erroneous and refers to judgments emphasizing the acceptance of Transaction Value for second-hand imports. The Revenue's reliance on Internet prices is deemed inappropriate, as per Tribunal and Apex Court rulings. Consequently, the impugned orders imposing penalties and fines are challenged and sought to be set aside.

Issue 3: Requirement of Licence for Main Frame of Photocopier
In the case of appeals concerning the Main Frame of Photocopiers, the learned Counsel concedes the necessity of a license for import. However, he argues that penalties should be limited to 10% of the Transaction Value, citing multiple judgments supporting this stance. The Tribunal upholds the confiscation and imposition of fines and penalties due to the absence of a license for importing the Main Frame, while also emphasizing the acceptance of Transaction Value.

Issue 4: Valuation Based on Internet Price
The Tribunal emphasizes that the valuation based on Internet prices is not valid for rejecting Transaction Value, aligning with previous judgments and the Apex Court's stance on accepting Transaction Value for second-hand machinery imports. The orders in question are set aside, emphasizing adherence to the Transaction Value for valuation purposes.

In conclusion, the Tribunal rules in favor of the appellants, setting aside the orders related to the import of Second Hand Photocopying Machines without a license, rejecting Transaction Value, and imposing penalties and fines. The judgment underscores the importance of accepting Transaction Value for second-hand imports and highlights the necessity of a license for importing specific components like the Main Frame of Photocopiers. The decision provides a comprehensive analysis of the legal issues involved, ensuring adherence to established legal principles and precedents.