2015 (2) TMI 221

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....the case are that the respondents imported old and used digital multifunction printing and copying machines during the period 05.06.2012 to 20.08.2013 without obtaining proper licence. Initially, the goods were detained as the goods have been imported by the respondents without having valid licence under Foreign Trade Policy ITCHS and HBC 6 read with provisions of Customs Act, 1962. It was also alleged that the respondents have suppressed the value of the goods. Therefore, the proceedings were initiated and the matters were adjudicated against the respondents. On appeal before the ld. commissioner (Appeals), the adjudication orders were set aside holding that such machines were freely importable as per para 2.1.7 of the Foreign Trade Policy....

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....1 2009-2014 have to be read together to give a purposive interpretation. In the present case, there is no conflict between the Foreign Trade Policy 2009-2014 and Handbook of Procedures V.1 2009-2014. This is evident from the fact that only in the case of spares certain conditions have been imposed for import, though falling under the restricted category under the Foreign Trade Policy 2009-2014. However, insofar as the Digital Multifunction Print and Copying Machines are concerned, no such condition has been imposed in the Handbook of Procedures V.1 2009-2014. A conjoint reading of Para 2.33 of Handbook of Procedures V.1 2009-2014 and Para 2.17 of Foreign Trade Policy 2009-2014, which says that imports should be in accordance with the proced....

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....one can say from the clear terms of the provision that there is no distinction made between second-hand capital goods and second-hand refurbished/reconditioned capital goods for purposes of free import. Except for those specifically mentioned restricted category of second-hand capital goods which are not allowed free import, all other second-hand capital goods including other enumerated restricted category of second-hand capital goods are permitted free import. Thus, with no distinction maintained between other restricted category of second-hand capital goods and second-hand capital free goods, we do not find any good ground to read in Clause 2.33, a restriction on the free import of second-hand digital multifunction print and copier machin....

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.... of second-hand capital goods goes for free import and what goes for import with conditions. As already noted. Handbook of Procedures (Vol.1) also specifically deals about refurbished/reconditioned spares of capital goods (Clause 2.33(c)). Thus, even though photocopier and digital multifunction print and copying machines fall under restricted category in second-hand capital goods group, yet, going by the only condition specified in Clause 2.33 of the Handbook of Procedures (Vol. 1), we do not find any justifiable ground to accept the contention of the revenue that there exists a conflict between Para 2.17 of the Foreign Trade Policy and Clause 2.33 of the Handbook of Procedures (Vol. 1). Thus, when Para 2.17 of Foreign Trade Policy specific....