TaxTMI 
TaxTMI 
2013 (3) TMI 408
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.... also services of independent Chartered Engineer M/s. SGS India Pvt. Ltd. were obtained for identification and valuation of the goods imported. The Chartered Engineer examined the goods and taking into consideration of the condition of the goods, recommended a value which was higher than the value as declared by the appellants. All the appellants accepted the enhanced value as appraised by the Chartered Engineer. The adjudicating authority on the waiver of issuance of the show-cause notices passed adjudication orders holding that the value recommended by the Chartered Engineer as correct value and assessed the said Bills of Entry. However, the adjudicating authority did not consider the pleas made by the appellants as regards to "old and used digital multifunction print and copier machines with accessories & attachments" (henceforth referred to as 'imported goods') and held that all the goods were liable for confiscation as they violated the conditions under para 2.17 of the Foreign Trade Policy i.e. these goods are photocopier machines and they require license and the importers having imported the said machines without license, goods are liable for confiscation and confiscated all....
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....ven Central Excise Tariff recognizes this position. (e) It is the submission that principal and/or only function of photocopying machines is duplicating/copying documents and no original prints can be created there from; on the other hand digital multifunctional machines like the imported goods have multifunction facilities like capable of performing two or more functions viz. print, scan, facsimile, e-mail etc. in standalone mode having devices such as HDD, RAM etc. or by attaching it to automatic data processing machines. It is the submission that using the said machine for photocopying is one of the incidental use of such machines while the main job is to take out original print outs sent through e-mail, facsimile etc. It is the submission that in technical terms the principal function of the machines is that of output and input functioning. (f) It is the submission that the ld. Commissioner (Appeals) has accepted this fact but has erred in equating the imported goods with photocopiers and held it as a restricted item for imports. It is the submission that ld. Commissioner (Appeals) has relied upon the observation of the Chartered Engineer taking the same out of context. It is....
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....ld that digital photocopier machine was covered by the restriction on imported second hand photocopiers is not correct inasmuch as the digital multifunctional machines imported in this case are not digital photocopier machines and the said Miscellaneous Order passed by the Tribunal has been set aside by the Hon'ble High Court of Madras on 19-7-2010 in Writ Petition No. 12968 of 2010. (h) It is the submission that the goods are not liable for confiscation and no redemption fine can be imposed and no penalty can be imposed. 5. Ld. SDR arguing on behalf of the Revenue would draw our attention to the findings recorded by the ld. Commissioner (Appeals). It is his submission that the para 2.17 of the Handbook of Procedures of the Foreign Trade (Development & Regulation) Act, 1992, restricts imports of second hand photocopier machines without valid import license. It is the submission that Department has been holding regularly that the term photocopier cover all types of photocopier. Ld. SDR draws our attention to the said para 2.17; submits that it clearly indicates that photocopier machines as per the para 2.17 would include even the multifunctional print & copier machines. It is his ....
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....th the documents. 2.2 The Make, Model, type (whether digital or Analogue) and Function (whether single or Multi) are indicated in the Annexure-1. 2.3 All these digital multifunction print and coping machines are full machines, used and not reconditioned. The Used Digital Multifunction (Print & Copying) Machines inspected are indirect process. The Used Digital Multifunction (Print & Copying) Machines and the Models inspected are classified as low duty, Medium Duty & Heavy Duty. 2.4 In this consignment make/model numbers are available for all the items. YOM is available for some of the items & not available for most of the items. Based on the physical condition of parts, wear & tear, usage/metre readings, log book details, introduction of the models. Inquiries made in the local market etc., we are of the opinion that the estimated YOM would be as indicated in Annexure-1. 2.5 The used digital (as per Annexure-1) are with multifunction facilities, viz., capable of performing two or more functions viz., scan, print, copy, fax and email etc., and also having storing devices such as HDD, RAM, etc. This machine can perform the above functions in standalone mode and also capable of conn....
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....are described in Part (I) above. These apparatus accept data from various sources (e.g., automatic data processing machines, flatbed desktop scanners, networks). Most incorporate memory to store that data. The products of this heading may create the characters or images by means such as laser, ink-jet, dot matrix or thermal print processes. The two most common types of printers are : (1) Electrostatic printers, which employ a process that involves electrostatic charges, toner and light. A light source (e.g., a laser, a light-emitting diode) is used to cancel the charge at specific points on a positively charged photoconductive surface (usually drum) leaving a positively charged replica of the image. The negatively charged toner is electrostatically attracted to the photoconductive surface, reproducing the original image. The toner is electrostatically transferred to the print medium, which has a strong positive charge than the photoconductive surface, and the image is then fused to the print medium by applying pressure and heat. (2) Inkjet printers. These machines place drops of ink onto a print medium to create an image. This heading includes printers presented separately for....
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....chniques, etc.). This group also includes contact type photocopying apparatus and thermo-copying apparatus. (C) Facsimile machines. Facsimile (or fax) machines are for the transmission and reception of text or graphics over a network and for the printing of a reproduction of the original text or graphics. Part (D) below describes such apparatus when capable of performing a copying function. (D) Combinations of printers, copying machines or facsimile machines. Machines which perform two or more of the functions of printing, copying or facsimile transmission are generally referred to as multi-functional machines. These machines are capable of connecting to an automatic data processing machine or to a network. The criterion "capable of connecting to an automatic data processing machine or to a network" is described in the Sub-heading Explanatory Note below. 6.7 It can be seen from the above reproduced explanatory notes to HSN that the notes specifically categorized the machines falling under Heading No. 84.43 into four different groups i.e. printers, copying machines, facsimile machines and combinations of printer, copying machines or facsimile machines. On careful reading of t....