Restricted import of old second-hand machinery justified confiscation, with redemption fine and penalty upheld for lack of rebuttal.

Second-hand machinery shown by a Chartered Engineer's certificate to be more than 10 years old was treated as a restricted import requiring a specific licence under the applicable import policy. Because the importer did not rebut the age finding, did not respond to the show cause notice, and produced no contrary evidence from the supplier or manufacturer, confiscation under Section 111(d) of the Customs Act read with Section 3(3) of the Foreign Trade (Development and Regulation) Act, 1992 was sustained. Redemption fine and penalty were also regarded as reasonable in light of the goods' value and the lack of a persuasive challenge to valuation.

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Issues: Whether the import of second-hand machinery, found to be more than 10 years old, was liable to confiscation and penalty for want of the required import licence, and whether the redemption fine and penalty were excessive.

Analysis: The imported machine was supported by a Chartered Engineer's certificate stating the year of manufacture as 1990 and certifying that it was more than 10 years old. The import policy applicable to second-hand capital goods treated imports of machinery older than 10 years as restricted and requiring a specific licence. The appellants did not file a reply to the show cause notice, did not effectively rebut the engineer's report, and did not produce contrary evidence from the supplier or manufacturer. In these circumstances, the confiscation under Section 111(d) of the Customs Act, 1962 read with Section 3(3) of the Foreign Trade (Development and Regulation) Act, 1992 was upheld. The redemption fine and penalty were also found to be reasonable having regard to the value of the goods and the absence of persuasive challenge to valuation.

Conclusion: The import was held to be in contravention of the import restrictions, confiscation and penalty were sustained, and no interference was warranted with the fine or penalty.

Final Conclusion: The appeal failed in full and the order of confiscation, redemption fine, and penalty remained undisturbed.

Ratio Decidendi: When the evidence shows that imported second-hand machinery falls within a restricted category requiring a specific licence, and the importer does not rebut the documentary finding on age or legality of import, confiscation and consequential penalty are sustainable.

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