Redemption fine and penalty on used digital multifunction machines set aside where identical issue was already settled for importers

Redemption fine and penalties on imported old and used digital multifunction machines were held unsustainable because the identical issue had already been decided in favour of importers and that view had been affirmed by the jurisdictional High Court. The Tribunal therefore set aside the fine and penalties for that category. For imported analogue photocopiers, however, the Tribunal treated the goods separately, sustained liability to redemption fine and penalty, and only reduced the quantum. Relief was thus confined to the digital multifunction machines, while the analogue photocopiers remained subject to reduced penal consequences.

---

---

Issues: (i) Whether the redemption fine and penalties imposed on the imported old and used digital multifunction machines were sustainable; (ii) Whether the redemption fine and penalties relating to the imported analogue photocopiers were sustainable.

Issue (i): Whether the redemption fine and penalties imposed on the imported old and used digital multifunction machines were sustainable.

Analysis: The identical issue had already been decided in favour of the importers in Shivam International and that view had been upheld by the jurisdictional High Court of Kerala. In view of that binding position, the imposition of redemption fine and penalties on the used digital multifunction machines could not be sustained.

Conclusion: The redemption fine and penalties on the digital multifunction machines were set aside, in favour of the assessee.

Issue (ii): Whether the redemption fine and penalties relating to the imported analogue photocopiers were sustainable.

Analysis: The analogue photocopiers were treated separately from the digital multifunction machines. No finding was recorded in favour of the appellants for this category, and the Tribunal held them liable to redemption fine and penalty, while reducing the amounts.

Conclusion: The redemption fine and penalties relating to the analogue photocopiers were sustained, with reduced quantum, against the assessee.

Final Conclusion: The appellants succeeded in full only with respect to the digital multifunction machines, while relief was denied for the analogue photocopiers and the liability was confined to reduced amounts for that part of the goods.

Ratio Decidendi: Where the identical issue has been decided in favour of the importer and affirmed by the jurisdictional High Court, redemption fine and penalty on the same class of goods cannot be sustained.

---