1986 (4) TMI 221 - AT - Customs

Summary

Issues:
1. Interpretation of the Import Policy regarding the classification of imported goods.
2. Eligibility of the appellants to import the goods under OGL.
3. Justification of the confiscation and redemption fine imposed.

Analysis:

1. Interpretation of Import Policy:
The case involved a dispute over the classification of imported goods, specifically a Label and Ticket Offset Printing Machine. The appellant claimed that the machine fell under the category of "Ticket and Label Printing Machine" as per the Import Policy. However, the authorities found that the imported machine was an offset printing machine without numbering or perforating attachment, thus not meeting the criteria of a ticket/label printing machine under the Import Policy.

2. Eligibility for OGL:
The appellant argued that since the Import Policy did not distinguish between an offset printing machine and a printing machine, they were entitled to clear the imported machine under OGL. However, the tribunal rejected this argument, emphasizing that the language used in the Import Policy must be strictly interpreted without implying additional conditions. It was clarified that the specific designation of "Ticket and Label Printing Machine" in the Import Policy indicated machines intended solely for printing tickets and labels, not general offset printing machines.

3. Confiscation and Redemption Fine:
The Adjudicating Authority had ordered the confiscation of the imported machine under the Customs Act but offered the appellants the option to pay a fine in lieu of confiscation. The tribunal, after considering the arguments and circumstances of the case, reduced the redemption fine from Rs. 10,000 to Rs. 7,500, stating that the reduction would serve the interests of justice. The appeal was partly allowed, maintaining the impugned order but adjusting the redemption fine.

In conclusion, the tribunal upheld the decision that the imported machine did not qualify as a ticket/label printing machine under the Import Policy, thus rejecting the appellant's claim for clearance under OGL. The reduction of the redemption fine provided some relief to the appellants, balancing the enforcement of customs regulations with considerations of fairness in the specific circumstances of the case.