Professional equipment not treated as consumer goods; bona fide actual user status also defeated penalty in import dispute.

Imported equipment used by a bank to record foreign exchange-related conversations was treated as professional equipment, not consumer goods, because the licensing clarification excluded professionally used equipment from that category. On that basis, the voice logging system and accessories were held importable under the Open General Licence. Even assuming the import was outside the licence, penalty was not justified because the importer was an actual user and had acted under a bona fide belief that the goods were not consumer goods. The impugned order was therefore set aside with consequential relief.

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Issues: (i) Whether the imported voice logging system and accessories were permissible for import under the Open General Licence as professional equipment and not consumer goods; (ii) whether penalty could be imposed when the importer acted as an actual user under a bona fide belief that the goods were not consumer goods.

Issue (i): Whether the imported voice logging system and accessories were permissible for import under the Open General Licence as professional equipment and not consumer goods.

Analysis: The import was examined in the light of the licensing authority's clarification indicating that professionally used equipment was not to be treated as consumer electrical goods. The equipment was found to be a 32-channel recording system used by a bank for recording conversations connected with foreign exchange matters, and therefore of a professional character rather than an item meant for household or personal use.

Conclusion: The import was held to be permissible under the Open General Licence.

Issue (ii): Whether penalty could be imposed when the importer acted as an actual user under a bona fide belief that the goods were not consumer goods.

Analysis: Even on the assumption that the import was not covered by the Open General Licence, the importer was an actual user and had imported the goods under a bona fide belief regarding their character. In that situation, penalty was not warranted.

Conclusion: Penalty was held to be not imposable.

Final Conclusion: The appeal succeeded and the impugned order was set aside, with consequential relief.

Ratio Decidendi: Goods used for professional purposes are not to be treated as consumer goods for licensing purposes, and penalty cannot be sustained where the importer acts bona fide as an actual user.

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