Import of used digital copiers: unrestricted status at the relevant time supported reduction of redemption fine and penalties.

Import of old and used digital multifunction printing and copying machines was treated as not restricted at the relevant time under the Foreign Trade Policy because the restriction on multifunctional digital copiers came into force only in 2012. As the enhancement of value was not disputed, the penal consequences were not eliminated entirely; however, the redemption fine and penalties were found excessive and were substantially reduced. Partial relief was therefore granted by lowering the fine and penalties while leaving the enhanced value undisturbed.

---

---

Issues: Whether the redemption fine and penalties imposed on import of old and used digital multifunction printing and copying machines were liable to be sustained, reduced, or set aside when the enhancement of value was not contested and the goods were not restricted at the relevant time.

Analysis: The appellants did not dispute the enhancement of value and confined the challenge to the redemption fine and penalties. The goods were held to be not restricted under Para 2.17 of the Foreign Trade Policy at the relevant time, as the restriction on multifunctional digital copiers came into force only in 2012. At the same time, the enhanced value remaining undisturbed justified retention of penal consequences, though not at the levels imposed in the impugned order. The appropriate course was therefore to substantially reduce the redemption fine and penalties.

Conclusion: The redemption fine and penalties were not set aside in full, but were reduced to meet the ends of justice, resulting in partial relief to the appellants.

---