Second-hand import restriction on repaired drives did not apply where goods were treated as original spare components.

Imported hard disk drives and tape drives marked as factory repaired were examined under the Exim Policy, the goods' technical nature, and a Chartered Engineer's certificate, together with clarification that the spare parts were intended for field replacement and maintenance of workstation servers. On that basis, they were treated as original spare components for large computer systems and not as used second-hand goods subject to import restriction. The appellate finding, based on the material on record, was that the second-hand import prohibition did not apply, so confiscation, fine, and penalty were set aside and that conclusion was upheld.

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Issues: Whether the imported hard disk drives and tape drive, marked as factory repaired, were second-hand goods hit by the import restriction and liable to confiscation under the Customs Act.

Analysis: The imported goods were examined in the light of the Exim Policy, the nature of the goods, the certificate of the Chartered Engineer, and the clarification that the spare parts were intended for field replacement and maintenance of workstation servers. The goods were found not to be used second-hand items. They were treated as original spare components meant for large computer systems and therefore as capital goods rather than items restricted as second-hand goods. The appellate authority had given a reasoned finding on the basis of the material on record, and no infirmity was found in that conclusion.

Conclusion: The restriction on second-hand imports did not apply to the goods and the order setting aside confiscation, fine, and penalty was upheld.

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