2014 (7) TMI 60 - AT - Customs

Import of old and used Buoyancy Tanks along with wire ropes, shackles chain blocks and hydraulic pumps for the purpose of laying off-shore pipeline at various projects sites - Violation of Foreign Trade Policy 2004-09 - Confiscation of goods - Redemption fine - Penalty - Held that - Appellant has imported old and used Buoyancy Tanks along with wire ropes, shackles chain blocks and hydraulic pumps. In fact, these imported goods are being used by the appellant for laying off-shore pipeline which means these goods are capital goods imported for rendering the service. As per para 2.17 of the Foreign Trade Policy 2004-09, the old and used goods can be imported freely without obtaining any specific licence. Therefore, I hold that the appellant is not required to obtain any licence for importation of the impugned goods. Hence, the question of confiscation of the said goods does not arise and consequently, the redemption fine and penalty are also not imposable. - decided in favour of assessee.

Summary

Issues:
Appeal against confiscation of imported goods with an option to pay redemption fine and imposition of penalty under Foreign Trade Policy 2004-09.

Analysis:
The appellant imported old and used Buoyancy Tanks along with other equipment for laying off-shore pipelines without a proper license. The adjudicating authority confiscated the goods, imposed a redemption fine, and penalty, which was confirmed by the Commissioner (Appeals). The appellant contended that the goods were capital goods used for rendering services and, as per para 2.17 of the Foreign Trade Policy 2004-09, old and used capital goods can be freely imported without a specific license. The appellant argued that no violation occurred. The respondent argued that the goods were not capital goods and required a specific license for importation.

The Tribunal considered the submissions and found that the imported goods, including Buoyancy Tanks, wire ropes, shackles chain blocks, and hydraulic pumps, were used for laying off-shore pipelines, indicating they were capital goods imported for service. According to para 2.17 of the Foreign Trade Policy 2004-09, old and used goods can be freely imported without a specific license. Therefore, the Tribunal held that the appellant did not need a license for importing these goods, leading to no grounds for confiscation, redemption fine, or penalty. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief.

The adjudicating authority was directed to implement the Tribunal's order within 30 days of communication.