Restricted imports and redemption: multi-function devices were not covered by compulsory registration, and home clearance could not be denied outright.

Used multi-function devices were held outside the compulsory registration order because the notified schedule covered printers, plotters, copying machines and duplicators, but not that distinct product category. The goods also could not be treated as hazardous waste on the reasoning adopted in the impugned order, since the relevant extended producer responsibility conditions were not operative for the imports in question. Although the goods remained restricted under the Foreign Trade Policy and were therefore liable to confiscation, the restriction was not an absolute prohibition; redemption for home consumption on payment of fine and duty remained available under the statutory scheme, with the redemption fine left for reconsideration on remand.

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Issues: (i) Whether used multi-function devices were required to comply with the Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012. (ii) Whether the imported goods could be treated as other wastes under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 and denied clearance on that basis. (iii) Whether, despite restriction under the Foreign Trade Policy, the goods could be redeemed and cleared for home consumption instead of being directed for re-export.

Issue (i): Whether used multi-function devices were required to comply with the Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012.

Analysis: The schedule to the compulsory registration order covered printers and plotters, and the later amendment added copying machines and duplicators, but did not specifically include multi-function devices. In the absence of a specific entry, the order could not be mechanically applied to such goods merely because they combine printing, scanning and copying functions.

Conclusion: The compulsory registration requirement under the 2012 order did not apply to the imported multi-function devices.

Issue (ii): Whether the imported goods could be treated as other wastes under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 and denied clearance on that basis.

Analysis: The goods were imported before the date from which extended producer responsibility conditions were stated to become operative for existing producers, and the footnote in Schedule VIII indicated that free trade policy for multi-function printers and copying machines was to be reviewed only upon domestic manufacture. On that footing, the goods could not be denied home clearance as hazardous waste merely on the basis adopted in the impugned order.

Conclusion: The finding that the goods were hazardous waste warranting denial of clearance on that basis was unsustainable.

Issue (iii): Whether, despite restriction under the Foreign Trade Policy, the goods could be redeemed and cleared for home consumption instead of being directed for re-export.

Analysis: The goods remained restricted for import under the Foreign Trade Policy and were therefore liable to confiscation under the Customs Act. However, a restriction is not an absolute prohibition, and confiscated restricted goods can be permitted to be redeemed under the statutory redemption mechanism on payment of fine and duty.

Conclusion: The goods were liable to confiscation, but they were required to be allowed redemption for home consumption, with the quantum of redemption fine left for reconsideration on remand.

Final Conclusion: The order denying home consumption was set aside, confiscation was sustained only to the extent of the import restriction, and the matter was remanded for determination of the appropriate redemption fine.

Ratio Decidendi: Where imported goods are restricted but not absolutely prohibited, confiscation may be sustained, yet redemption for home consumption cannot be denied if the statute permits release on payment of fine and duty; a specific statutory or notified coverage is necessary before applying compulsory registration or hazardous-waste restrictions to a distinct product category.

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