1999 (6) TMI 126 - AT - Customs

Summary

Issues:
Appeal against confiscation, fine, and penalty imposed on imported goods based on two grounds: (a) whether the goods constitute components of a Photocopying machine, and (b) whether being second-hand goods affects their import under a Special Import Licence.

Analysis:
1. Issue (a) - Components of Photocopying Machine:
The appellant argued that the imported goods, being reconditioned components without the Populated Circuit Board (PCB), do not form a complete photocopying machine. The absence of the PCB renders the machine non-functional, supporting the claim that the goods are components. Referring to legal precedent, the appellant highlighted that incomplete, second-hand reconditioned photocopiers qualify as components as per Import Export Policy para 7(10). The dictionary definition of "components" was also cited to emphasize the contribution to the composition of a whole. The Tribunal concurred, ruling that the absence of the PCB meant the goods were merely a set of components for a photocopying machine, not a complete machine.

2. Issue (b) - Second-Hand Goods and Special Import Licence:
The appellant contended that the goods being reconditioned did not automatically classify them as second-hand, as reconditioning could involve both fresh defective goods and used goods. Import Policy allowing reconditioned components against a Special Import Licence was cited to argue against the department's characterization of the goods as second-hand. The Tribunal agreed, finding that the goods were reconditioned components of photocopiers eligible for import under the Special Import Licence. The Tribunal criticized the lower authorities for erroneously deeming the goods as second-hand, which contradicted the Import Policy and rendered its provisions meaningless.

3. Conclusion:
After a thorough review of submissions and evidence, the Tribunal concluded that the imported goods were indeed reconditioned components of photocopiers, eligible for import under the Special Import Licence. The Tribunal set aside the order-in-appeal, allowing the appeal with consequential relief. The judgment emphasized the importance of interpreting laws in a manner that does not render other provisions redundant, ensuring a consistent and logical application of legal principles.