Free import of secondhand capital goods upheld, with no import licence required and related confiscation set aside.

Secondhand video games imported as capital goods were treated as freely importable under the Foreign Trade Policy, with the Handbook of Procedures and a DGFT circular supporting that view. The policy provisions permitting free import of secondhand capital goods were applied, and the chapter relating to services was held inapplicable to this import. As no import licence was required, confiscation, redemption fine and penalty were not sustainable.

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Issues: Whether secondhand video games imported as capital goods were freely importable under the Foreign Trade Policy without an import licence and, consequently, whether confiscation, redemption fine and penalty were justified.

Analysis: The goods were treated as secondhand capital goods and not as goods requiring an import licence. The relevant import policy provisions permitted free import of secondhand capital goods, and the Handbook of Procedures and DGFT circular supported that position. The contrary reliance on the chapter dealing with services was held to be inapplicable to the import in question.

Conclusion: The imported goods were freely importable as secondhand capital goods, no import licence was required, and the confiscation, fine and penalty could not be sustained.

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