TaxTMI 
TaxTMI 
2020 (4) TMI 278
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.... a proprietary firm based in Chennai and had imported 102 old and used digital multi functional (Print and Copying) machines with standard accessories from Singapore and declared total C & F value of US $23,855/-. These machines had country of origin as Japan, Germany, China and Korea. They filed bill of entry No. 556117 dated 30.09.2009 to clear the goods. The importer had not produced any import license for the goods which were imported. They also had not produced any Chartered Engineer's inspection certificate at the load port certifying the value of the machines so imported. The goods were examined and as per the dock's appraising report dated 28.10.2009 the goods were referred by the Customs to a Chartered Engineer who assessed the val....
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.... of the Customs Act read with Rule 3(2) and Rule 3(3) of Foreign Trade (Development & Regulation) Act, 1992. However, he gave them an option to redeem the goods on payment of redemption fine of Rs. 4,50,000/-. He also imposed a penalty of Rs. 75,000/- upon the appellant in terms of section 112(a) of the Customs Act, 1962. 5. Aggrieved, the appellant appealed to the first appellate authority who upheld the order of the lower authority but only reduced the redemption fine from Rs. 4,50,000/- to Rs. 1,50,000/-. Aggrieved by this order, the present appeal has been filed. 6. Ld. Consultant for the appellant submits that they are not challenging the enhancement of the value by the Customs and had indeed paid the Customs duty accordin....
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..... He would submit that with effect from 28.02.2013 in addition to photo copier machines, import of second hand digital multi functional print/copying machines has also been restricted. Therefore, after 28.02.2013 import of such machines is permissible only against a license. He would submit that it is on record that they had imported the goods on 30.09.2009 well before the Notification No.35 (RE-2012)/2009-2014 dt.28.02.2013 was issued. During that relevant period the only notification, which restricted import of second hand goods was Notification No.31 (RE-2005)/2004-2009 dt.19.10.2005 which specifically restricted import of used photo copier machines but had not restricted used multi functional digital copiers. Therefore, during the perio....
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....ad it so, particularly in the context of the powers conferred under Section 5 of the Foreign Trade (Development and Regulation) Act on the Government to make amendment to the policy. A comparative study of Notification No. 35 (RE-2012)/2009-2014, dated 28-2-2013 amending Para 2.17 of the Foreign Trade Policy and the provision that existed prior to 28-2-2013, show that the amended notification made the import policy regime as subject to an authorisation for import as against the original requirements viz., allowed to be imported only as per provisions of FTP, ITC (HS), HBP v1, Public Notice or an Authorisation issued for import of the specified second-hand item. In the light of the amendment and the clear provision, we do not find any justif....
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.... acceptance of the enhanced value by the appellant does not make their goods liable for confiscation for misdeclaration of value. Therefore, the confiscation under section 111(m) also fails. Consequently, the imposition of penalty under section 112(a) also needs to be set aside. 12. Learned departmental representative supports the impugned order. 13. We have considered the arguments on both sides and perused the records. The following questions have to be decided. (1) Whether the second hand multi functional digital copiers could be imported without license or authorisation from the DGFT during the relevant period? (2) Whether the restriction on import of used photo copier machines by DGFT's Notification No. 31 (RE-2....