2026 (9) TMI 303

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....te confiscation and enhancing of penalty under Section 114A of the Customs Act, 1962 by the first Appellate authority. 2. The brief facts are the Appellant had imported various internal Hard Discs for the computers and filed Bill of Entry dated 23.09.2021. Another Bil of Entry was also filed on 24.09.2021 for clearance of similar goods. During inspection, certain mis-declarations were found and proceedings were initiated. The goods were seized on 29.09.2021. Thereafter samples were drawn and on examination it is found that the goods were 'used' as per the power on hours, relying on the Para No. 2.31(II) of the Foreign Trade Policy (FTP), it is held that the goods are liable for confiscation. Thus, the entire goods including the t....

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....toms Act was enhanced from Rs. 5 lakhs to Rs.20 lakhs on the Respondent Company and Rs. 5 lakhs to Rs.10 lakhs on the business head of the Respondent company. Aggrieved by said order, present appeals are filed. 3. When the appeals came up for hearing, Learned Counsel for the Appellant draws our attention to the definitions of manufacture under Chapter 9 of Foreign Trade Policy (FTP) and as per Chapter 9.36 "Manufacture" means to make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, re-packing, polishing, labelling, Reconditioning repair, remaking, refurbishing, testing, calibration, re-enginee....

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....st sampling 6(six) boxes were picked up of hard disc drive and 20 nos. of RAMs. Search at godown 1923 nos. of 500 GB HDDs were found packed in 65 Boxes imported vide bill of entry no. 5473794 dated 17.9.2021 and 10 were taken for test. During the search at office premises 13(thirteen) Seagate brand HDDs were found and 3(three)HDDs were taken for testing at Enviro Tech IT Solutions which gave test results only in respect of 27 hard disc and 20 RAMs, 25 were found in working condition and 2 were found in non-working condition and all 20 RAMS are found in working condition. From the Annexure it is seen that in respect of box no 23, 50 total power on hours was zero and one and in respect of box no 12 they were not able to check. The test result....

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....ed Representative (AR) for the Revenue reiterated the grounds of appeal and the findings as per the impugned order. Further submits that the adjudicating authority in his findings has categorically construed that the impugned goods in question are old, used/ re-furbished/ second hand and are restricted and importable only against authorization in terms of Foreign Trade Policy (FTP), Para 2.31(II) and Para 2.10 of FTP 2015-2020, "Import of secondhand goods other than capital goods is restricted and importable only against authorization. Further, goods which are importable freely without any "restrictions' may be imported by any person. However, if such imports require an authorization, actual user condition can be specifically dispensed by D....