Import licence requirement for used digital multifunction machines ended in split CESTAT opinion on restricted goods treatment.

Old and used digital multifunction printing and copying machines imported before 05.06.2012 were disputed as to whether they required an import licence under Paragraph 2.17 of the Foreign Trade Policy and whether they were liable to confiscation as restricted goods under Customs law. The Judicial Member held that the goods were freely importable without a licence and rejected the Revenue appeals, while the Technical Member held that a licence was required and allowed the appeals. The matter ended in a difference of opinion, with no final majority resolution on licensability or confiscation.

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Issues: Whether old and used digital multifunction printing and copying machines imported prior to 05.06.2012 required an import licence under Paragraph 2.17 of the Foreign Trade Policy, and whether such goods were liable to confiscation as restricted goods under the Customs law.

Outcome: The Member (Judicial) held that the goods were freely importable without a licence and rejected the Revenue appeals, while the Member (Technical) held that the goods required a licence and allowed the Revenue appeals. The matter ended in a difference of opinion without a final majority resolution.

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