Licensing breach under EXIM Policy supported confiscation of restricted GPS trans-receivers and sustained penalty.

Imported goods identified as GPS trans-receivers were treated as falling within the restricted category under the EXIM Policy, so import without the required licence was held unauthorised. The challenge based on a fresh technical objection was not entertained because it had not been raised before the lower authorities. Since the goods were imported in contravention of the licensing regime, they were liable to confiscation and, under the Customs Act definition, treated as smuggled goods. The reduced redemption fine and penalty were maintained, and no interference was found warranted.

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Issues: Whether the imported goods were covered by the EXIM Policy and required a licence, and whether their import without such licence justified confiscation with redemption fine and penalty.

Analysis: The imported goods were found to be GPS trans-receivers and not merely GPS receivers. On that basis, the appellate authority's view that the goods fell within the restricted category under the EXIM Policy was accepted. The challenge based on a new technical objection was not entertained because it had not been raised before the authorities below. Once the goods were imported in contravention of the applicable law, they were liable to confiscation and, by operation of section 2(39) of the Customs Act, 1962, treated as smuggled goods. The redemption fine and penalty as reduced by the appellate authority were found and no interference was warranted.

Conclusion: The import was held to be restricted and unauthorised for want of licence, and the confiscation, redemption fine and penalty were sustained against the assessee.

Final Conclusion: The appeal was rejected and the order of the appellate authority was maintained.

Ratio Decidendi: Import of goods in contravention of the licensing regime under the EXIM Policy renders them liable to confiscation and brings them within the definition of smuggled goods under the Customs Act.

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