Importability of second-hand photocopying machines under EXIM Policy: confiscation and penalty held unsustainable.

Second-hand photocopying machines were examined under the EXIM Policy in light of the Larger Bench ruling in Atul Commodities. The Tribunal preferred the view affirmed by two High Courts over a contrary single High Court view and treated the imports as not contravening the policy. As no prohibition or restriction was found on the available reasoning, confiscation, redemption fine, and penalty were held unsustainable, and the Revenue's appeal failed.

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Issues: Whether second-hand photocopying machines were importable without licence and whether confiscation, redemption fine, and penalty were sustainable.

Analysis: The import was tested against the EXIM Policy in the light of the Larger Bench decision in Atul Commodities. Although one High Court had taken a contrary view, the Tribunal noted that two High Courts had affirmed the Larger Bench view and therefore preferred to follow those decisions. On that basis, the Tribunal held that there was no contravention of the policy warranting confiscation or consequential penalties.

Conclusion: The import was not treated as prohibited or restricted so as to justify confiscation, redemption fine, or penalty, and the Revenue's appeal failed.

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