2016 (7) TMI 542 - AT - Customs

Confiscation of goods - redemption fine and penalty - Import of second hand Cannon MFD (Digital Multifunctional devices) printers - contravention of condition laid in para 2.17 of the Foreign Trade Policy. - description of goods shown in Bill of Entry is not photocopiers but it is stated as multifunctional Digital machines, copier, scanner (printer). The department had taken the assistance of a Chartered Engineer for examination of the goods and assessment of its value - hereby the value declared by the appellants was rejected and order was passed enhancing the value basing upon the report/valuation of chartered Engineer. Held that - in view the fact that the Chartered Engineer Certificate has certified that the goods imported are not e-waste, we hold that goods, in question, were not restricted for import and as such no import licence was required for their import - the confiscation of goods and consequent imposition of redemption fine and penalty is not sustainable. The impugned orders are modified to the extent of setting aside the confiscation of goods and imposition of redemption fine and penalty. - Decided in favor of appellant.

Summary

Issues Involved:
Whether the imported goods are liable for confiscation for being imported without a license, in contravention of the condition laid in para 2.17 of the Foreign Trade Policy.

Analysis:

Issue 1: Import of Second Hand Goods Without License
The Tribunal heard three appeals together concerning the import of used multifunctional copier cum printers without a license, in violation of the condition in para 2.17 of the Foreign Trade Policy. The appellants had filed Bill of Entries for clearance of these goods, which were appraised by a Chartered Engineer due to departmental concerns over the declared value. The department contended that the goods, being photocopier machines, required a license for import as per the FTP conditions. Orders were passed confiscating the goods and imposing penalties, leading to the appellants challenging these decisions.

Issue 2: Interpretation of FTP Condition
The condition in para 2.17 of the FTP restricted the import of second-hand photocopiers without a license, with an amendment in 2012 extending the restriction to digital multifunctional print and copying machines. The department argued that the imported goods fell under this restricted category, justifying the confiscation and penalties. However, the appellants asserted that their goods were multifunctional digital machines, not standalone photocopiers, and cited classification differences to support their claim.

Issue 3: Judicial Interpretation and Precedents
The Tribunal analyzed the classification of the goods based on Bill of Entry details and expert assessments. Referring to precedents like CCE Delhi Vs Best Mega International, it was established that prior to the 2012 amendment, old and used digital multifunction printing and copying machines could be imported without a license. The Tribunal noted that the goods in question were not restricted for import during the relevant period and, therefore, the confiscation and penalties imposed were deemed unjustified.

Conclusion:
Considering the classification of goods, expert assessments, and legal precedents, the Tribunal ruled in favor of the appellants, setting aside the confiscation of goods and the imposition of penalties. The appeals were allowed with consequential reliefs, highlighting the importance of accurate classification and adherence to import regulations as per the prevailing policies.