Age proof for second-hand capital goods controlled import permissibility, sustaining confiscation and penalty while reducing redemption fine.

Import of a second-hand capital good was treated as contrary to the EXIM Policy because the record did not support the declared manufacture year: the machine itself showed no year, while two integral components bore 1988 and 1989, undermining the chartered engineer's 1993 certificate. On that factual basis, the machine was held to be more than ten years old and therefore not freely importable, so confiscation and penalty were sustained. However, as the importers were actual users, the redemption fine was found excessive and reduced to Rs. 5 lakhs.

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Issues: Whether the imported second-hand machine was over ten years old and therefore not freely importable under the EXIM Policy, and whether the confiscation, penalty, and redemption fine required interference.

Analysis: The machine itself did not bear any year of manufacture. Two integral components of the machine bore manufacturing years of 1988 and 1989, which made the chartered engineer's certificate stating 1993 unsupported by the record. On these facts, the finding that the machine was more than ten years old and therefore imported contrary to the policy permitting free import only of second-hand capital goods not more than ten years old was upheld. The confiscation and penalty were therefore sustained, but the appellants being actual users of the machine, the redemption fine was considered excessive and was reduced.

Conclusion: The import was held impermissible and the confiscation and penalty were maintained, while the redemption fine was reduced to Rs. 5 lakhs.

Final Conclusion: The appeal failed on the merits, with only limited relief granted by reducing the redemption fine.

Ratio Decidendi: Where the material on record disproves the declared age of a second-hand capital good and shows it to be beyond the permissible import age under the policy, confiscation and penalty are sustainable, though redemption fine may be moderated on the facts.

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