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Issues:
1. Confiscation of diesel engines upheld without redemption option. 2. Misdeclaration of value and enhancement by Customs authorities. 3. Interpretation of Import & Export Policy 1992-97 regarding second-hand goods. 4. Comparison of diesel engines as consumer goods or capital goods. 5. Consideration of redemption fines for release of goods. 6. Requirement of license for import of consumer goods. Analysis: 1. The appeal challenged the order of confiscation of a container load of diesel engines without the option for redemption. The lower appellate authority upheld the confiscation but set aside the enhancement of the goods' value from the declared amount of Singapore dollars 20250 to Indian Rs. 9,90,146. The appellants argued that the goods were second-hand diesel engines imported under the belief that they were allowed under the Import & Export Policy 1992-97. 2. The appellants contended that the Import Control Order permitted the import of second-hand goods unless specifically prohibited or restricted. The Customs authorities considered diesel engines as consumer goods, which are listed under Restricted Items. The appellants referred to previous cases where redemption fines were imposed for the release of similar goods, indicating a practice of allowing release upon payment of fines. 3. The Tribunal analyzed the Import Control Order and the Policy on consumer goods, concluding that a license is required for the import of consumer items, including diesel engines. The Tribunal rejected the appellants' argument that second-hand goods could be imported without restrictions, emphasizing that the Policy does not allow import of items listed under Prohibited or Restricted categories. 4. Despite the goods being classified as consumer items under Restricted Items, the Tribunal noted the past practice of allowing release on payment of redemption fines. Therefore, the Tribunal ordered the redemption of the goods upon payment of a suitable fine, remanding the matter to determine the fine amount based on market value, profit margin, and previous redemption fines. 5. The Tribunal acknowledged the Customs authorities' practice of allowing redemption of diesel engines until July 1992 and directed the appellants to redeem the goods by paying an appropriate fine. However, due to the lack of information on the basis for varying redemption fines, the matter was remanded to determine a suitable fine, considering previous releases and the condition of the goods. 6. In conclusion, the Tribunal upheld the confiscation of the goods but allowed redemption upon payment of a fine, emphasizing the need for a license for importing consumer goods like diesel engines. The decision aimed to maintain consistency with past practices while ensuring compliance with import regulations and policies.
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