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Issues:
1. Confiscation of second-hand machinery under Customs Act, 1962. 2. Interpretation of firm contract for importation of goods. 3. Applicability of policy for the year 1988-91. 4. Import of second-hand machinery under Open General Licence. 5. Redemption fine imposed on confiscated goods. Analysis: 1. The appeal challenged the confiscation of second-hand machinery, a Linotype Phototype setting system, valued at US $30,500 c.i.f. The machinery was confiscated under Section 111(d) of the Customs Act, 1962, and allowed to be redeemed on payment of a fine of Rs. 2,00,000. The appellants argued that the machinery was confiscated due to two reasons: the ban on importing second-hand machinery during 1990-93 and the nature of the machinery as a computer-based system, which was not permissible for import under the 1988-91 policy. The Tribunal upheld the confiscation, stating that the appellants failed to establish a firm contract for the importation of the goods. 2. The Tribunal examined the contract presented by the appellants and found it lacking the attributes of a firm contract. The contract, titled "Proforma Invoice," did not entail any pecuniary obligations or penalties for non-compliance. The absence of an irrevocable commitment or penalties for non-importation led the Tribunal to conclude that the contract was not firm. As a result, the appellants could not benefit from the relaxation provided under the 1988-91 policy, and the machinery was subject to the 1990-93 policy, which prohibited the import of second-hand machinery without a valid license. 3. Regarding the import of second-hand machinery under Open General Licence (OGL), the appellants argued that the machinery imported was a Phototype setting system, not a computer-based system as defined in the policy. However, the Tribunal determined that the imported system, despite being a Phototype setting system, incorporated computer elements and fell within the definition of a computer/computer-based system under the policy. As a result, the machinery was deemed impermissible for import under the OGL conditions of the 1988-91 policy. 4. The Tribunal noted that no specific plea was made regarding the excessive nature of the redemption fine imposed on the confiscated goods. As no circumstances were presented to warrant a reduction in the fine, the Tribunal upheld the correctness of the confiscation and the redemption fine, leading to the dismissal of the appeal. In conclusion, the Tribunal affirmed the confiscation of the second-hand machinery, emphasizing the lack of a firm contract for importation and the machinery's non-compliance with the import policies in force during the relevant period. The appeal was dismissed, and the redemption fine was upheld as not excessive.
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