Pre-restriction import of second hand digital copiers cannot be confiscated as prohibited goods under customs law.

Second hand Multi Functional Digital Copiers imported before 05.06.2012 were treated as outside the later restriction on such goods, so confiscation under section 111(d) of the Customs Act could not be sustained because that provision applies only to prohibited or restricted imports. The article notes that the goods were viewed as a distinct commodity from photocopiers and that the issue was settled by prior larger bench authority. As confiscation failed, the connected redemption fine and penalty under sections 125 and 112(a) also could not survive; valuation enhancement did not alter that result because confiscation was not based on section 111(m).

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Issues: Whether second hand Multi Functional Digital Copiers imported prior to 05.06.2012 were liable to confiscation under section 111(d) of the Customs Act, 1962, and whether the connected redemption fine under section 125 and penalty under section 112(a) could stand.

Analysis: The import was made before the date from which restriction on such goods was introduced. The goods were treated as a distinct commodity from photocopiers, and the question was no longer res integra in view of the earlier larger bench view that import of Multi Functional Digital Copiers prior to 05.06.2012 was not restricted. Since confiscation under section 111(d) applies only where import is in violation of prohibition or restriction, the confiscation could not be sustained. The confiscation was also not based on under-valuation under section 111(m), and therefore the admitted enhancement of value did not save the order of confiscation. Once confiscation failed, the redemption fine and the consequential penalty also could not survive.

Conclusion: The import was not liable to confiscation under section 111(d), and the redemption fine and penalty were set aside.

Ratio Decidendi: Where Multi Functional Digital Copiers were imported before the date on which restriction was introduced, their import cannot be treated as prohibited or restricted merely because second hand photocopiers were regulated, and confiscation under section 111(d) cannot be sustained.

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