2015 (9) TMI 243 - AT - Customs

Import of second hand photocopiers Imposition of Duty, penalty and fine Appellant filed Bills of Entry for clearance of used photocopier main frame assemblies and other parts Adjudicating authority had enhanced declared value and also confiscated goods for contravention of licence and misdeclaration of goods and thereby confirmed demand of duty and imposed fine and penalty Held that - In case of Sumit Office Systems and Others v. CC, Trichy & Tuticorin 2009 (3) TMI 858 - CESTAT, CHENNAI wherein Tribunal observed that import of second hand photocopier prior to 19-10-2005 also do not warrant licence for import Respectfully following earlier decision of Tribunal, court hold that no licence is required for import of second hand photocopiers prior to 19-10-2005 Accordingly, imposing fine and penalty set aside and otherwise impugned orders upheld Decided in favour of Assesse.

Summary

Issues involved:
1. Dismissal of appeals for non-prosecution and subsequent applications for restoration.
2. Confiscation of goods for contravention of license and misdeclaration.
3. Interpretation of import regulations regarding second-hand photocopiers.
4. Value enhancement based on Chartered Engineer's assessment.

Issue 1: Dismissal of appeals for non-prosecution and restoration applications
The appeals were initially dismissed for non-prosecution, leading to applications for restoration without delving into the merits. The Tribunal, after considering the applications, found sufficient reasons to recall the ex-parte order and allowed the restoration of appeals in their original numbers.

Issue 2: Confiscation of goods for contravention of license and misdeclaration
The appellant had filed Bills of Entry in 2003 for used photocopier main frame assemblies and other parts. The adjudicating authority enhanced the declared value, confiscated the goods for contravention of license, and misdeclaration. The demand of duty was confirmed, and fines and penalties were imposed, which were upheld by the Commissioner (Appeals).

Issue 3: Interpretation of import regulations regarding second-hand photocopiers
The Tribunal considered the import of second-hand photocopiers prior to 19-10-2005 and the requirement of a license for import. Referring to previous judgments, including the Apex Court's decision, it was held that no license was necessary for importing second-hand photocopiers before the specified date. The Tribunal emphasized the distinction between second-hand goods and second-hand capital goods, concluding that import of old and used photocopiers did not require a license before 19-10-2005.

Issue 4: Value enhancement based on Chartered Engineer's assessment
The appellant contested the value enhancement based on the Chartered Engineer's assessment, arguing against misdeclaration of goods. However, the Tribunal, relying on precedent and the absence of misdeclaration, upheld the earlier decision regarding the requirement of a license for importing second-hand photocopiers. Consequently, the fine and penalty were set aside, and the impugned orders were upheld.

This comprehensive analysis of the judgment highlights the key issues surrounding the dismissal and restoration of appeals, confiscation of goods, interpretation of import regulations, and value enhancement based on assessment, providing a detailed insight into the legal reasoning and conclusions reached by the Tribunal.