Second-hand photocopier imports as capital goods support waiver of pre-deposit and stay of penalty recovery.

Second-hand photocopier machines were treated as capital goods in light of the DGFT amending notification and the earlier Larger Bench view, with the position said to be reinforced by the High Court order noted in the text. On that basis, the import was regarded as not requiring a licence at the relevant time. Because the goods were treated as second-hand capital goods, the confiscation order and the penalty were considered prima facie unsustainable, and the importer was held entitled to waiver of pre-deposit and stay of recovery of the penalty.

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Issues: Whether second-hand photocopier machines imported without a licence were capital goods, and whether the importer was entitled to waiver of pre-deposit and stay of recovery of the penalty imposed under the Customs Act.

Analysis: The amending notification issued by the DGFT showed that second-hand photocopier machines were recognised as capital goods. The earlier Larger Bench view treating such machines as capital goods was also referred to, and the position was treated as reinforced by the High Court order noted in the judgment. On that basis, the import of second-hand photocopier machines did not require a licence at the relevant time. As the goods were treated as second-hand capital goods, the confiscation order and the penalty imposed on the importer were considered prima facie unsustainable.

Conclusion: The importer was entitled to waiver of pre-deposit and stay of recovery of the penalty amount.

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