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of <h1>Tribunal Upholds Customs Clearance for Second-Hand Machines, Clarifies Legal Principles</h1> The tribunal upheld the Commissioner's order, ruling that the 65 second-hand machines should not be confiscated as they were cleared under the Customs Act ... Revision/Review - Penalty and fine Issues:1. Release of 65 second-hand machines imported earlier.2. Quantum of redemption fine and penalty imposed.Issue 1 - Release of 65 second-hand machines:The case involved the seizure of 107 second-hand machines, with 42 machines not yet cleared. The Department alleged that the importer lacked an industrial unit, was not an actual user, and did not possess a valid import license for the 42 machines. A show cause notice proposed confiscation of all machines. The Commissioner's Order-in-Original released 65 machines and confiscated 42, allowing redemption on payment of a fine and imposing a penalty. The Revenue challenged this, arguing that all 65 machines should have been confiscated. The tribunal held that once goods are cleared under Section 47 of the Customs Act, they can only be reviewed for fraud or misdeclaration. As no such violations were alleged, the 65 machines were not liable for confiscation.Issue 2 - Quantum of redemption fine and penalty:Regarding the redemption fine and penalty, the tribunal noted that the import of second-hand machines was permitted with restrictions. The Commissioner found the contravention not serious, considering that second-hand machine import was not prohibited. The issue of eligibility to import using additional licenses was unclear, as clarified by the Deputy Chief Controller of Imports and Exports. The tribunal agreed with the Commissioner's decision on the redemption fine and penalty, emphasizing that the Department failed to establish grounds for an increase. The tribunal upheld the finding that the partners of the importer were not personally involved, thus not liable for individual penalties.In conclusion, the tribunal upheld the Commissioner's order, rejecting the Revenue's appeals. The judgment clarified the legal principles governing the release of imported goods and the determination of fines and penalties in customs cases involving second-hand machine imports.
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