1987 (2) TMI 364 - AT - Customs

Tribunal allows appeal on Import Trade Control violation, recognizing replacement & declared value

The tribunal held that the appellants did not violate Import Trade Control by importing a second-hand printing machine from a different supplier as a ... Goods imported in replacement of the goods previously imported but found damaged Issues:1. Import Trade Control2. Correct value of the second-hand printing machine importedImport Trade Control:The appellants imported a second-hand printing machine as a replacement for a damaged one. The import policy had changed, making import of second-hand machines impermissible. The appellants were allowed to import a replacement under OGL-4 of the AM-1984 Policy. The department alleged violation of Import Trade Control due to the machine coming from a different supplier and being second-hand. The tribunal disagreed, stating replacement machines need not be from the same supplier and that second-hand replacements are permissible. They held that the replacement machine being second-hand was acceptable under the OGL-4 entry, thus no violation occurred.Correct Value of the Machine:The value of the second machine was disputed, with the Additional Collector arguing it should be valued at the level of the first machine due to re-conditioning and longer life certification. However, the tribunal noted the economic factors affecting the trade price, including changes in import policies affecting demand for second-hand machines. They found the difference in declared values reasonable, around 23%, considering market conditions. The tribunal accepted the declared value of the second machine, concluding that the appellants were not guilty of mis-declaration. Consequently, the tribunal set aside the impugned order and allowed the appeal in favor of the appellants, providing them with consequential relief.