Import of second-hand capital goods remained free where the policy imposed procedure only, not a separate licence condition.

Import of old and used digital multifunction printing and copying machines was treated as permissible without a licence where the Foreign Trade Policy and Handbook of Procedures, read together, imposed only the procedure in Para 2.33 and no separate licence condition for the concerned second-hand capital goods. Mere classification as restricted second-hand goods did not by itself bar free import. On that reasoning, the imports were found compliant with the governing policy framework, the challenge to the impugned orders failed, and the appeals were dismissed while the orders setting aside the adjudication were sustained.

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Issues: Whether old and used digital multifunction printing and copying machines imported during the relevant period were freely importable without a licence under the Foreign Trade Policy and Handbook of Procedures.

Analysis: The import policy regime was read by taking the Foreign Trade Policy and the Handbook of Procedures together. The relevant policy provisions treated second-hand capital goods under a structured regime, and the specific procedure in Para 2.33 of the Handbook governed the manner of import. The cited precedent held that, for the goods in question, no separate restriction was imposed beyond the procedure prescribed, and that their classification as restricted second-hand goods did not by itself create a licence requirement. Applying that reasoning, the imports were treated as compliant with the governing policy framework.

Conclusion: The machines were held to be correctly imported without obtaining a licence, and the challenge to the impugned orders failed.

Final Conclusion: The appeals were dismissed and the orders setting aside the adjudication were sustained.

Ratio Decidendi: Where the Foreign Trade Policy and the Handbook of Procedures, read together, do not impose a specific licence condition for the import of the concerned second-hand capital goods, mere inclusion in a restricted category does not bar free import.

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