Customs classification of photocopying machines in SKD/CKD condition upheld, with assessment and confiscation sustained but fine and penalty reduced.

Imported photocopying equipment was found, on repeated examination in the importer's presence and on the importer's own statement under Section 108 of the Customs Act, to comprise 20 complete photocopying machines in SKD/CKD condition rather than mere components. The Tribunal treated the last examination report, placed on record pursuant to its direction, as binding on the parties and found no reliable evidence of indigenous procurement of essential parts. On that factual basis, the declared description was rejected, and the assessment and confiscation were sustained. The redemption fine and penalty were, however, reduced.

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Issues: Whether the imported consignment was a set of complete photocopying machines in SKD/CKD condition or only components, and whether the resulting assessment, confiscation and penalty were sustainable with appropriate modification of fine and penalty.

Analysis: The imported goods were examined on multiple occasions in the presence of the importer or its representatives. The examination reports and the importer's statement under Section 108 of the Customs Act consistently indicated that the consignment comprised 20 complete photocopying machines in SKD/CKD condition, with no reliable evidence that any essential components had been indigenously procured. The last examination report formed part of the record pursuant to the Tribunal's own direction and bound the parties. On that factual basis, the declared description of the goods as mere components could not be accepted, and the Collector's findings on valuation and confiscability were upheld.

Conclusion: The import was held to be of complete photocopying machines in SKD/CKD condition, so the assessment and confiscation were sustained. The redemption fine and penalty were, however, reduced.

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