Used imported goods in breach of import restriction face confiscation, yet redemption may still be allowed without absolute confiscation.

Imported pipes proved by examination and a Chartered Engineer's report to be old, previously used goods were treated as restricted under para 2.31 of the Foreign Trade Policy 2015-2020. On that basis, the import attracted confiscation under section 111(d) of the Customs Act, 1962 and penalty under section 112(a). However, because the goods were not regarded as prohibited or as posing a safety threat, absolute confiscation was not warranted and redemption for home consumption was allowed on payment of fine and penalty, both of which were reduced.

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Issues: Whether the imported pipes, found to be used goods, were liable to confiscation and penalty for breach of the import restriction under the Foreign Trade Policy, and whether the goods should nevertheless be allowed redemption for home consumption with appropriate fine and penalty.

Analysis: The examination report and the Chartered Engineer's report established that the goods were old and previously utilised, including welded joints indicating prior use. On that basis, the import fell within the restriction on used goods under para 2.31 of the Foreign Trade Policy 2015-2020 and attracted confiscation under section 111(d) of the Customs Act, 1962 with penalty under section 112(a) of the Customs Act, 1962. At the same time, the goods were not treated as posing a safety threat and were not considered prohibited goods, so redemption was permitted instead of absolute confiscation.

Conclusion: The confiscation was upheld, but the importer was allowed redemption for home consumption on payment of reduced fine, and the penalty was also reduced.

Final Conclusion: The appeal succeeded only to the extent of reduction in redemption fine and penalty, while the finding of confiscability for import of used goods in breach of the policy restriction was maintained.

Ratio Decidendi: Where imported goods are proved on evidence to be used goods imported in breach of a valid restriction, they are liable to confiscation and penalty, but redemption may still be allowed if the goods are not prohibited and do not warrant absolute confiscation.

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