2010 (12) TMI 326 - AT - Customs

Confiscation - REP licence - TV Broadcast 85 Studio Equipment - Hon ble High Court of Bombay has considered the import of the items in question in ASHOK KUMAR JAIN Versus UNION OF INDIA 2010 -TMI - 78225 - BOMBAY HIGH COURT - Held that - the items imported are the capital goods as covered under REP licence which was permitted to import under para 177(2) of AM 1988-91 - goods are not liable for confiscation, hence redemption fine and penalties imposed on the appellants in the impugned order are not warranted.

Summary

Issues:
- Confiscation of goods with an option to redeem on payment of fine and penalty.
- Interpretation of import policy regarding clearance against REP licenses.
- Applicability of transitional provisions in import policy.
- Classification of goods as capital goods under the relevant policy.

Confiscation of Goods:
The appeal challenged the order confiscating goods due to them being deemed consumer goods not covered under the REP licenses. The appellant imported TV Broadcast 85 Studio Equipment against REP licenses, but Customs refused clearance. The High Court allowed clearance against an ITC bond pending dispute resolution.

Interpretation of Import Policy:
The appellant argued that the goods were capital goods under the 1988-91 policy, not consumer goods as claimed by Customs. The High Court decision in a similar case supported this argument, emphasizing that the goods were eligible for clearance under the REP licenses issued.

Transitional Provisions in Import Policy:
The Revenue contended that transitional provisions in the 1990-93 policy rendered the REP licenses invalid for certain goods. However, the appellant argued that the goods fell under a different category and were eligible for clearance under the REP licenses.

Classification of Goods:
The High Court analyzed the import policy applicable at the time of import, emphasizing that the goods were not consumer goods but capital goods eligible for clearance under the REP licenses. The Tribunal concurred, setting aside the confiscation order and penalties, allowing the appeal with consequential relief.

This judgment clarifies the classification of goods under import policies, emphasizing the eligibility of capital goods for clearance against REP licenses. It highlights the importance of interpreting policies accurately to determine the admissibility of goods and the implications of transitional provisions on license validity.