Industrial use goods not classed as consumer goods under EXIM Policy, so import licence, confiscation and penalty failed.

Goods used for industrial or manufacturing purposes, and not directly satisfying human needs, do not fall within the EXIM Policy definition of consumer goods. On that basis, items such as spray guns, cloth cutting machines, pins, thread cutters and needles were treated as tools, accessories or materials used in garment production and related industrial functions, so no import licence was required. The foot massager was separately accepted as falling within medical use on the material produced. As the goods were not consumer goods, confiscation under section 111(d) of the Customs Act, 1962 was unsustainable and the penalty could not stand.

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Issues: Whether the imported goods, including spray gun, cloth cutting machine, pins, thread cutter, needles and foot massager, were consumer goods requiring an import licence under the EXIM Policy 1992-97 and were therefore liable to confiscation and penalty.

Analysis: The imported items were examined against the policy definition of consumer goods, which covers goods directly satisfying human needs without further processing. The goods were found to be tools, accessories, or materials used in garment manufacturing, packaging, trimming, or other industrial purposes, and not goods meant for direct human consumption or ordinary consumer use. The policy provisions permitting import of capital goods, raw materials, components, consumables, spares, parts, accessories and instruments without restriction were read to show that such goods were not confined to actual users. The foot massager was treated separately and accepted as falling within medical use on the material produced. Since the goods were not consumer goods, the restriction requiring a licence did not apply.

Conclusion: The goods were held not to be consumer goods, no import licence was required, confiscation under Section 111(d) of the Customs Act, 1962 was set aside, and the penalty was also unsustainable.

Ratio Decidendi: Goods used for industrial or manufacturing purposes and not directly satisfying human needs do not fall within the category of consumer goods under the EXIM Policy, even if they may be usable without further processing.

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