2004 (4) TMI 444 - AT - Customs

Confiscation of Electrical Goods Upheld, Import License Key

The Appellate Tribunal upheld the confiscation of electrical connection apparatus as consumer goods due to the lack of a specific import license. The ... Exim - Import - Consumer goods - Redemption fine - Quantum Issues: Confiscation of goods as consumer items due to lack of specific import license.Analysis:The Appellate Tribunal upheld the impugned order of the Commissioner (Appeals) that confiscated the electrical connection apparatus, considering them as consumer goods requiring a specific import license. The appellants failed to produce the necessary license, leading to the confiscation with an option for redemption on a fine.The challenge to the order was based on the argument that the goods, although imported in CKD condition and assembled in India with additional components like cables, modems, and routers, were not consumer items directly satisfying human needs. However, the Tribunal disagreed, emphasizing that the items were complete products for office use, assembled before sale, and fell under the definition of consumer goods as per the IPC policy. The Tribunal noted that minor assembly and attachment of accessories did not exclude the goods from being classified as consumer items.Furthermore, the Commissioner (Appeals) found no specific treatment for Electro Magnetic Induction and Radio Magnetic Inductions, which the appellants claimed to have undertaken. This lack of specific treatment supported the decision to confiscate the goods. The Tribunal also addressed the appellants' plea to reduce the redemption fine, noting that the value of the goods was approximately 12 lakhs, and the fine imposed was less than 10% of this value, warranting no interference.In conclusion, the Tribunal rejected the appeal, affirming the confiscation of the goods as consumer items due to the absence of a specific import license and upholding the imposition of the redemption fine.