2016 (4) TMI 138 - AT - Customs

Import of old and used photo copying machines - Mis-declaration of goods - Imposition of fine and penalty under Section 112 (a) of the Customs Act, 1964 - Enhancement of value and confiscation of the goods for contravention of license policy - During the during the period under import i.e. on 17.9.2004, the import of old and new photo copier machines covered under the policy as second hand capital goods and the policy was specifically amended on 19.10.2005 where the second hand photo copiers were brought under restricted category - Held that - by relying on the decision of Tribunal in the case of M/s. Office Tec Industries Vs. CC (Port-Export), Chennai 2015 (9) TMI 243 - CESTAT CHENNAI , no licence is required for import of second hand photocopiers prior to 19-10-2005. Therefore, the fine and penalty are set aside. - Decided partly in favour of appellant

Summary

Issues involved:
Import of old and used photo copying machines, enhancement of value, confiscation of goods for contravention of license policy.

Import of old & used photo copying machines:
The appellant imported old and used parts of photocopier and other components. The adjudicating authority rejected the declared value and enhanced it, confiscating the goods for contravention of FTP license and mis-declaration. The appellant argued that import of second-hand photocopiers prior to 19-10-2005 did not require a license. The Tribunal referred to previous judgments and held that no license was needed for such imports before the specified date. The policy was amended on 19-10-2005 to restrict second-hand photocopier imports. The Tribunal set aside the fine and penalty, upholding the appellant's position.

Enhancement of value:
The adjudicating authority enhanced the value of the imported goods under Rule 8 of CVR. The appellant contested this enhancement, citing a previous Tribunal decision. The Tribunal, based on previous rulings, concluded that no license was necessary for importing second-hand photocopiers before 19-10-2005. Therefore, the Tribunal set aside the fine and penalty, upholding the appellant's position on the enhancement of value as well.

This judgment clarifies the import regulations regarding old and used photocopiers, emphasizing the requirement of a license only for imports after a specific date. It highlights the importance of adhering to policy amendments and previous judicial decisions in determining import requirements and valuation of goods. The Tribunal's decision provides guidance on licensing obligations and value enhancement in cases of imported second-hand photocopiers, ensuring compliance with relevant laws and regulations.