2004 (6) TMI 76 - AT - Customs

Tribunal overturns confiscation order, allows appeal for reassessment of goods

The Tribunal found in favor of the appellant, setting aside the confiscation order and allowing the appeal for reassessment of goods at the declared ... EXIM - Second hand machinery Issues:1. Declaration of imported machinery as less than 10 years old.2. Confiscation of goods under Customs Act, 1962.3. Appellant's contention regarding the age of imported machinery.4. Examination of the machinery by Customs authorities.5. Chartered Engineer's Certificate supporting the age of the imported machines.6. Allegations of affixing new specification plates on old machinery components.7. Assessment of evidence and findings by the Tribunal.Analysis:Issue 1: The appellant imported machinery declared as less than 10 years old, supported by a Chartered Engineer's Certificate. Customs authorities examined the machinery and alleged it to be over 10 years old.Issue 2: Customs authorities confiscated the consignment under the Customs Act, 1962, citing import restrictions on machinery over 10 years old. The Commissioner imposed a fine and penalty, leading to the appeal.Issue 3: Appellant argued that the imported machinery was indeed less than 10 years old, as per their order specifications and Chartered Engineer's Certificate. They contended that any discrepancy was due to the supplier's actions.Issue 4: Customs authorities examined the machinery and found discrepancies in the age markings on electrical parts, suspecting a cover-up of older machinery being imported as newer.Issue 5: The Chartered Engineer's Certificate detailed the machinery's particulars, including manufacturer, year of manufacture, and purchase price, supporting the appellant's claim of importing machinery less than 10 years old.Issue 6: Allegations were made regarding affixing new specification plates over old ones on machinery components, suggesting an attempt to misrepresent the age of the imported machinery.Issue 7: Upon reviewing the evidence and submissions, the Tribunal found the appellant's due diligence in ordering machinery less than 10 years old. The Tribunal concluded that the evidence was insufficient to prove the machinery was over 10 years old, setting aside the confiscation order and allowing the appeal for reassessment of goods at the declared value.This detailed analysis highlights the key legal issues, arguments presented by the parties, examination of evidence, and the Tribunal's decision based on the presented facts and legal provisions.