Import licence exemption for Software Technology Park units upheld where goods are not prohibited under the EXIM Policy.

A Software Technology Park unit approved by the Government of India was treated as eligible to import second-hand goods without a separate import licence under Para 6.3 of the EXIM Policy, provided the goods were not prohibited. Applying an earlier Tribunal ruling, CESTAT held that the absence of prohibition meant the foundation for confiscation and penalty could not survive. The appeal was allowed, and consequential relief followed. The decision confirms that a Software Technology Park unit may import non-prohibited goods without obtaining a separate licence under the applicable policy.

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Issues: Whether a Software Technology Park unit was entitled to import second-hand goods without a separate import licence under the EXIM Policy and whether the confiscation and penalty order could stand.

Analysis: The imported unit had been approved as a Software Technology Park unit by the Government of India. The Tribunal applied the earlier ruling that, under Para 6.3 of the EXIM Policy, a Software Technology Park unit does not require a separate licence for importing goods that are not prohibited. Since the goods were held not to be prohibited, the basis for confiscation and penalty did not survive.

Conclusion: The appeal was allowed and the appellant was held entitled to the benefit of the policy permitting import without a separate licence, with consequential relief.

Ratio Decidendi: A Software Technology Park unit may import goods without a separate licence where the goods are not prohibited under the applicable EXIM Policy.

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