Restricted import of second-hand photocopier parts upheld, while redemption fine and penalty were reduced as disproportionate.

Import of old and used photocopier parts was treated as restricted because the Foreign Trade Policy barred import of second-hand goods, and a description as "parts" did not remove that restriction. The confiscation under the Customs Act was therefore upheld. On penalty, the recurring nature of the imports justified both redemption fine and penalty, but the amounts were found disproportionately high compared with the assessable value and were reduced to a more reasonable level while preserving deterrence.

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Issues: (i) Whether import of old and used parts of photocopiers was prohibited under the Import Policy and liable to confiscation. (ii) Whether the redemption fine and penalty imposed were excessive and required reduction.

Issue (i): Whether import of old and used parts of photocopiers was prohibited under the Import Policy and liable to confiscation.

Analysis: The goods were old and used parts of photocopiers, and the restriction on import of second-hand goods flowed from Para 2.17 of the Foreign Trade Policy 2004-09. The classification claimed as parts did not make the goods freely importable, because the restriction applied to second-hand goods and, in any event, photocopier parts could not stand on a better footing than second-hand photocopiers themselves. The confiscation under the Customs Act was therefore upheld.

Conclusion: The import was restricted and the confiscation was justified.

Issue (ii): Whether the redemption fine and penalty imposed were excessive and required reduction.

Analysis: The recurring nature of the imports justified imposition of fine and penalty, but the amounts fixed were disproportionately high when measured against the assessable value upheld. The earlier approach in similar matters had been lower, and the amounts imposed in this case were reduced to a more reasonable level while still preserving deterrence.

Conclusion: The redemption fine and penalty were reduced.

Final Conclusion: The appeal succeeded only to the extent of reduction in redemption fine and penalty, while the confiscation and finding of restricted import were maintained.

Ratio Decidendi: Import of second-hand goods remains restricted under the Foreign Trade Policy despite classification claims, and penalties must bear a reasonable proportion to the assessable value and the gravity of the violation.

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