2017 (9) TMI 1392 - AT - Customs

Valuation of imported goods - old and used photocopiers - restricted item - Held that - taking into account all factors, particularly, the aspect of the goods not being restricted at the time of their import, the interest of justice would be served in this case, by reducing the redemption fine imposed u/s 111(m) to ₹ 50,000/- and penalty imposed u/s 112 (a) ibid to ₹ 10,000/- - appeal allowed - decided partly in favor of appellant.

Summary

Issues:
1. Import of "old and used photocopiers" without the required license.
2. Confiscation of imported goods under Customs Act, 1962.
3. Imposition of penalty under section 112(a) of the Customs Act, 1962.
4. Dispute regarding the assessable value of the imported goods.

Analysis:
1. The appeal revolved around the import of "old and used photocopiers" without the necessary license. The department contended that the import was unauthorized and contravened section 3(3) of the FT(DR) Act, 1992. The Commissioner confirmed the proposal for confiscation of the goods under section 111(m) of the Customs Act, 1962, and imposed a penalty under section 112(a) of the same Act. However, the appellant argued that prior to 19.10.2005, there were no restrictions on the import of such goods.

2. The Tribunal considered the case law cited by the appellant, referencing a previous order where it was held that for goods not restricted, confiscation was unwarranted. The Tribunal acknowledged that the goods in question were imported before the restrictions came into effect. The Tribunal agreed that while the enhanced assessable value could render the goods liable for confiscation under section 111(m) of the Act, considering the circumstances, it reduced the redemption fine and penalty imposed, emphasizing that the interest of justice would be served by a more lenient approach.

3. The Authorized Representative supported the adjudication order but acknowledged that the goods were imported before the restrictions were imposed. The Tribunal, after considering all factors, including the absence of restrictions at the time of import, decided to reduce the redemption fine and penalty significantly. The Tribunal ordered the redemption fine to be reduced to ?50,000 and the penalty to ?10,000, thereby partially allowing the appeal and providing consequential relief as per law.

4. In conclusion, the Tribunal partially allowed the appeal, taking into account the timing of the import, the absence of restrictions at that time, and the significant reduction in the redemption fine and penalty. The decision aimed to balance the interests of justice and compliance with the relevant legal provisions, ultimately providing relief to the appellant in the matter of the disputed import of "old and used photocopiers."