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TMI Blog2009 (3) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... rted by the appellants herein (although the value declared by the importers has been rejected and value enhanced by the Customs authorities, that is not the subject matter of challenge in any of these appeals.) The goods have been confiscated in terms of Section 111(d) of the Customs Act, 1962 read with Section 3(3) of the Foreign Trade (Development Regulation) Act for import of goods without specific licence, and an option to redeem them on payment of fine has been extended. Penalty has also been imposed upon the importers under Section 112 of the Customs Act, 1962. 2. We have heard both sides. The contention of the importers that the goods imported by them were freely importable and their import did not require to be covered by the li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e than 10 years old could be imported freely. Those goods, therefore, were treated as new goods. This resulted in confusion. Therefore, DGFT stepped in to clarify that second-hand photocopying machines, irrespective of the period of use, shall fall in the restricted category (see Policy circular No. 19/03). Para 1 of Policy Circular No. 20/05 recites that photocopying machines are not to be imported without a licence even if they are less than 10 years old and even if the photocopying machines are imported for service providers. Vide para 3, the Policy circular No. 20/05 clarifies that second-hand photocopying machines are covered under the definition of second-hand goods , therefore, their import shall be governed by the provisions of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, import of old and used photocopying machines stands covered by the concept of second-hand capital goods in para 2.17 (particularly in the light of the last statement in the said para, which we have underlined hereinabove. 21. One more aspect needs to be mentioned. Para 2.33 expressly states that import of old and used computers/second-hand computers are restricted. Para 2.33 of the Handbook do not restrict photocopying machines. Import of photocopying machines are expressly restricted only by Notification No. 31 dated 19-10-2005. This itself indicates that categorization/re-categorization cannot be done by policy circulars. Such exercise has to be undertaken by specific amendment to the Policy vide Section 5 of the 1992 Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,00,000 9. C/88/06 Vijay Traders 3,80,000 1,10,000 10. C/89/06 Vijay Traders 4,00,000 1,15,000 11. C/90/06 Mech Tech 3,70,000 1,00,000 12. C/20/06 L.V. Enterprises 5,00,000 1,40,000 13. C/04/06 S.S. International 3,75,000 1,10,000 14. C/03/06 Sri Venkatesh Enterprises 21,00,000 6,00,000 15. C/239/06 R.S. Enterprises 8,00,000 2,30,000 16. C/293/07 Vijay Traders 2,85,306 28,530 17. C/294/07 Mech Tech 1,91,734 19,173 18. C/295/0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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