Freely importable second-hand capital goods support provisional release pending customs adjudication under the trade policy.

Second-hand multifunction print, copying and scanning machines were held to fall outside the restricted classes under Clause 2.31 of the Foreign Trade Policy 2023 and, by the residual category, to be freely importable as second-hand capital goods. On that basis, continued detention of the imported goods was not justified, and provisional release was considered appropriate, with adjudication and further customs proceedings left open in accordance with law. The court also noted the earlier view on the same class of imports and that no confiscation order had yet been passed, supporting the request for interim release subject to payment and quantification of enhanced duty.

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Issues: Whether the imported second-hand multifunction print, copying and scanning machines fell within the category of freely importable second-hand capital goods under Clause 2.31 of the Foreign Trade Policy 2023, and whether provisional release of the goods should be directed.

Analysis: The relevant policy classified second-hand capital goods into distinct categories. The goods in question were found not to fall within the restricted categories and, by operation of the policy, were treated as second-hand capital goods eligible for free import under the residual category. The Court also placed reliance on the earlier judicial view dealing with the same class of imports and noted that the petitioners stood on a stronger footing because no confiscation order had yet been passed. On that basis, the continued detention of the goods was held not to be justified and provisional release was considered appropriate, leaving adjudication and further proceedings open in accordance with law.

Conclusion: The petitioners were entitled to provisional release of the imported goods, subject to payment and quantification of the enhanced duty, and the customs authorities were permitted to continue further proceedings in accordance with law.

Ratio Decidendi: Where second-hand capital goods do not fall within the specifically restricted categories under the governing import policy, they are importable under the residual free category and may be provisionally released pending adjudication.

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