1999 (2) TMI 336 - AT - Customs

Summary

Issues:
Confiscation of secondhand machinery, imposition of redemption fine and penalty based on actual user condition under the import policy.

Analysis:
The case involved an appeal against an order upholding the confiscation of secondhand machinery, imposition of a redemption fine, and a penalty. The main issue was whether the importer satisfied the actual user condition under the import policy. The appellant imported second-hand machinery described as a confectionery machine without holding an SSI license for confectionery, which was contested by the department. The appellant argued that the import satisfied the conditions of the policy applicable at the time, which did not require an SSI license for the specific industry. The advocate highlighted the definition of actual user under the current policy, emphasizing that possession of an SSI license was not a prerequisite. The advocate also cited relevant case law to support their argument.

The tribunal considered the facts and provisions of the import policy in question. It was noted that the imported machinery had a residual life of more than 5 years, and the prescribed procedures were followed. The key point of contention was whether the importer qualified as an actual user under the prevailing policy. The tribunal analyzed the definition of actual user under the policy, which did not mandate possession of an SSI license for the specific industry. It was concluded that the importer satisfied the definition of an actual user industrial under the current policy, and the absence of an SSI certificate with an endorsement for confectionery did not invalidate the actual user condition. Therefore, the order confiscating the machinery and imposing fines and penalties was set aside.

The tribunal expressed concern over the prolonged dispute causing demurrage on the imported goods due to the misapplication of an outdated policy definition. The decision clarified that setting aside the order in appeal also nullified the original order, resulting in the cancellation of the fine and penalty. The judgment highlighted the importance of interpreting the import policy in accordance with the prevailing definitions and conditions, rather than outdated requirements.