Actual user eligibility under OGL failed for printing machinery import, confiscation upheld, but redemption fine was reduced.

Actual user eligibility under OGL for importing printing machinery depended on proof that the importer was using the goods in its own authorised industrial manufacturing process. Registration as a newspaper establishment, export-related certificates and a newsprint import licence did not establish the required industrial status, and no satisfactory SSI or equivalent proof was shown for the relevant period. On that basis, the OGL benefit was rejected and confiscation was upheld. The redemption fine, however, was found excessive in the circumstances and was reduced.

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Issues: Whether the importer satisfied the actual user requirement for import of the printing machine under OGL and whether the confiscation with redemption fine was justified.

Analysis: The importer relied on registration as a newspaper establishment, export-related certificates and an import licence for newsprint, but these did not establish an industrial establishment for its own use of the imported machinery. The definition of actual user (industrial) required the goods to be utilised in the manufacturing process of an authorised industrial undertaking, and no satisfactory SSI registration or equivalent industrial proof was produced for the relevant time. In the absence of proof that the importer was an eligible actual user, the import was not covered by OGL. However, considering the value of the goods and the circumstances, the redemption fine was found to be excessive.

Conclusion: The confiscation was upheld and the importer's claim to OGL benefit was rejected, but the redemption fine was reduced from Rs. 1,00,000 to Rs. 50,000.

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