2016 (10) TMI 16 - AT - Customs

Classification of used Digital Multifunction Machines - Chapter Heading 9009 of Customs Tariff or Chapter Sub-heading 847160 of the Customs Tariff - photocopier machines as envisaged under para 2.17 of FTP or photocopying apparatus under the Customs Tariff - the decision in the case of Shivam International Vs. Commissioner of Customs, Cochin 2013 (3) TMI 408 - CESTAT BANGALORE has been referred - Held that - the decision in the case of Shivam International applies to the present case - redemption fine and penalty set aside. Valuation of Analogue Photocopiers - value enhanced by Chartered Engineer - Held that - no finding given in favor of appellant - imposition of redemption fine and penalty upheld - amount to be paid within two months - appeal disposed off - decided partly in favor of appellant.

Summary

Issues:
Appeal against Order-in-Appeal rejecting appeal and upholding Order-in-Original confiscating imported goods. Classification of Digital Multifunction Machines as Photocopier Machines under Customs Tariff and FTP. Contrary views by different Tribunal Benches. Challenge to Tribunal decision in High Court. Imposition of redemption fine and penalty.

Analysis:
The appellant imported Digital Multifunction Printing and Copying Machines and Photocopier Machines. Customs Circular required 100% examination by a Chartered Engineer, leading to discrepancy in valuation. The Joint Commissioner confiscated goods for lacking a valid license under Foreign Trade Policy (FTP). The Commissioner of Customs (Appeals) upheld this, prompting the present appeal.

The appellant argued the machines were multifunctional, not mere photocopying machines, citing previous Tribunal judgments. The High Court upheld a similar Tribunal decision, supporting the appellant's stance. The appellant sought to set aside the redemption fine and penalty based on this.

The Revenue contended that both Digital Multifunction and Photocopier Machines require a license for import. They cited contrary views by different Tribunal Benches to challenge the appellant's position.

Considering the arguments and case laws, the Judicial Member found the redemption fine and penalty on Digital Multifunction Machines unsustainable due to the High Court's decision. These were set aside. However, the Analog Photocopiers' valuation was upheld, requiring the appellant to pay a redemption fine and penalty within two months.

The judgment highlights the classification dispute, reliance on precedent, and the impact of High Court decisions on Tribunal rulings. It clarifies the legal obligations for importing specific machines and the consequences of non-compliance under Customs regulations and FTP provisions.