2000 (1) TMI 393

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....-heading 8472.90 as office machine, as confirmed by the Collector (Appeals) in the impugned order. 2. Shri Gopal Prasad, learned Advocate, submitted that the Appellants imported seven "Note and Document Counting Machines" on the strength of three REP licences which were classified by them under sub-heading 8443.50 as 'other printing machinery'; that the Additional Commissioner, Customs, in the Adudication Order, dated 21-7-1992 confiscated the machine with an option to redeem the same on payment of fine of Rs. 7.50 lakhs imposed a penalty of Rs. 3,50,000/- holding that the machines in question are office machines as these are used in banks for counting notes; that according to ITC Policy, office machines are not permitted to be impo....

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....uch imposition of penalty and redemption fine is very harsh. 3. Countering the arguments Shri Jagdish Singh, learned D.R., submitted that the Appellate Tribunal, in the case of Printwell Industries v. C.C., Bombay, 1999 (107) E.L.T 252 (T) = 1999 (81) E.C.R. 355 (T) did not classify the vacumatic Paper Countring Machine under Heading 84.35 as "Other Printing Machinery; machinery for uses ancillary to printing" as it was not specially designed or exclusively designed to operate with Printing machinery. He, therefore, contended that the impugned goods cannot be classified under Sub-heading 8443.50 of the Tariff. Regarding Import Policy, the learned D.R. submitted that no doubt under the Flexibility Provisions, certain Capital goods co....

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....ly provides as under: "Applications for import of office machines will not be entertained under the procedure for import of Capital Goods. Import of Office machines can not also be made under flexibility provisions." 6. In view of the clear provisions, the appellants were not eligible to import office machines under the flexibility provisions. There is no force in the submissions of the learned Counsel that the "Office machines" mentioned in sub-para (7) relate to ten office machines specified in sub-para (1). Sub-para (1) dealt with grant of licences to registered Exporter for importing office machines and they were allowed import of 10 specified office machines on fulfilment of certain conditions, Sub-para (7) of the Para 118 d....