Madras HC orders provisional release of imported second-hand multifunction printing machines under DGFT Notification 5/2015-2020

The Madras HC directed release of imported second-hand multifunction printing machines on provisional basis. The court held that such equipment falls under restricted electronics requiring DGFT authorization per Notification No.5/2015-2020. Following precedent in Simple Machines case, the court ordered customs to quantify enhanced duty within one week, with petitioners required to deposit this amount for goods release within three weeks of payment. The petition was disposed of with conditional release mechanism established.

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Issues Involved:
- Release of second-hand Highly Specialised Equipment digital Multifunction Print, Copying & Scanning Machines.
- Applicability of previous court orders to the current case.
- Compliance with Foreign Trade Policy 2023 and Customs regulations.

Summary:

Release of Second-Hand Equipment:
The petitioner sought the release of various models of second-hand Highly Specialised Equipment digital Multifunction Print, Copying & Scanning Machines. The court considered a similar issue previously in W.P.No.29673 of 2022 and passed an order on 23.11.2023, which the petitioner argued should apply to the current case.

Applicability of Previous Orders:
The respondent's counsel argued that the previous writ petitions challenged show cause notices, whereas no such notice was issued in the current petitions. The petitioner countered that the previous relief was sought for the release of goods, not against show cause notices, making the previous order applicable.

Compliance with Foreign Trade Policy 2023:
The central issue was whether the imported materials fall under Clause 2.31 of the Foreign Trade Policy 2023 under the category of second-hand goods. The court examined the categories and conditions under the policy, concluding that the petitioner's goods fall under category I(d), which allows for free import without restrictions, as opposed to category I(b), which requires authorization from DGFT.

Court's Decision:
The court referenced the Supreme Court's stay on confiscation of similar goods and previous orders by the learned Single Judge, which supported the provisional release of goods. The court found no new changes in the Foreign Trade Policy 2023 that would prohibit the import of the petitioner's goods without DGFT authorization.

Order:
1. The respondents were directed to consider the plea for provisional release of goods upon payment of enhanced duty.
2. Customs was instructed to quantify the duty within one week, and upon payment, release the goods within three weeks.
3. The order does not prevent Customs from proceeding with further adjudication.
4. Petitioners could apply for waiver of demurrage charges, which should be considered objectively by the respondents.

The writ petitions were ordered with no costs, and connected miscellaneous petitions were closed.

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