Import policy breach for second-hand printing machines led to confiscation relief, with redemption fine and penalties reduced.

Confiscation of eight second-hand printing machines kept separately and physically available in the factory was held unsustainable because there was no actual sale or disposal breaching the import policy restriction on sale within five years without prior permission, and confiscation was set aside as to those machines. The redemption fine and penalties on the imported machines were then reworked with reference to earlier Tribunal decisions and reduced significantly. A limited set-off was also directed if proof of payment for release of the eight machines was produced, leaving relief granted on the disputed machines and only the remaining liabilities sustained.

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Issues: (i) Whether confiscation of eight second-hand printing machines kept separately and physically available in the factory premises was sustainable for alleged violation of the import policy restriction on sale within five years without prior permission. (ii) Whether the redemption fine and penalties imposed on the imported machines were excessive and liable to be reduced.

Issue (i): Whether confiscation of eight second-hand printing machines kept separately and physically available in the factory premises was sustainable for alleged violation of the import policy restriction on sale within five years without prior permission.

Analysis: The eight machines were found to be separately kept, not installed, and only ready for sale, but there was no actual disposal. On these facts, the restriction against sale within five years was not breached in relation to those machines.

Conclusion: Confiscation of the eight machines was unsustainable and was set aside, in favour of the assessee.

Issue (ii): Whether the redemption fine and penalties imposed on the imported machines were excessive and liable to be reduced.

Analysis: The amounts were reworked with reference to earlier Tribunal decisions that had reduced similar fines and penalties in cases involving imported second-hand printing machines disposed of in breach of the relevant import policy. The fine and penalty figures were scaled down for the concerned importers, and a limited set-off was directed if proof of payment for release of the eight machines was produced.

Conclusion: The redemption fine and penalties were reduced, and the appeal was partly allowed.

Final Conclusion: The order sustained confiscation only to the extent of the machines not covered by the successful challenge, but substantially reduced the monetary liabilities and granted relief on the eight machines.

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