Import of second-hand combine harvesters without policy authorisation contravened import rules and sustained confiscation and penalty.

Import of reconditioned second-hand combine harvesters, described as prototypes, was treated as import of second-hand goods rather than capital goods. Under the Import and Export Policy 1997-2002, such goods could be imported only under a public notice or a licence, and no such authorisation covered the import. The handbook provisions did not override the policy requirement, so the import was held to contravene the policy. Confiscation under the Customs Act and penalty for improper import were therefore upheld.

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Issues: Whether the import of reconditioned second-hand combine harvesters, described as prototypes, without a public notice or licence under the Import and Export Policy 1997-2002 was liable to confiscation and penalty.

Analysis: The imported goods were second-hand goods and were not capital goods. Under paragraph 5.3 of the Import and Export Policy 1997-2002, such goods could be imported only in accordance with a public notice or a licence. As no public notice or licence covered the import, the import contravened the policy and the plea based on the handbook provisions did not avail the appellant.

Conclusion: The confiscation under Section 111(d) of the Customs Act, 1962 and the penalty under Section 112(a) of the Customs Act, 1962 were upheld against the appellant.

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