Capital goods classification for photocopiers defeats consumer goods treatment and invalidates confiscation.

Photocopiers were held to be capital goods, not consumer goods, because a Larger Bench had already settled that they could be imported without restriction. On that binding classification, treating the goods as consumer goods was unsustainable, so the confiscation order was set aside. The appeal was allowed to that extent, and the appellant was held entitled to return of the penalty and redemption fine deposited.

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Issues: Whether photocopiers were classifiable as capital goods rather than consumer goods so as to invalidate confiscation.

Analysis: The classification issue had already been settled by a Larger Bench decision holding photocopiers to be capital goods capable of import without restriction. In view of that binding position, the treatment of the goods as consumer goods could not be sustained.

Conclusion: The confiscation order was set aside and the appeal was allowed to that extent; the appellant was also held entitled to return of the penalty and redemption fine deposited.

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