NOVA OFFICE SYSTEMS, Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) IN all the above cases, the common issues involved are free importability of old and used photocopiers imported by the appellants herein and the valuation thereof. The goods have been held liable to confiscation in terms of Section 111(d) of the Customs Act, 1962 read with Section 3(3) of Foreign Trade (Development and Regulation) Act, 1992 for import without specific licence and in terms of Section 111(m) for misdeclaration of value with an option of redemption on payment of redemption fine, and the value of the goods has been enhanced; and penalty has also been imposed upon the importers under Section 112 ibid, as per the details set out in the annexure to this order.

(2.) WE have heard both sides. The contention of the importers that the goods imported by them were freely importable and their import did not require to be covered by a licence is to be accepted, in the light of apex court's judgment dt. 24.2.09 in Civil Appeal No. 2999/2007 etc. in the case of Atul Commodity Pvt. Ltd. and Ors. v. Commissioner of Customs, Cochin, holding that import of old and used photocopiers is not restricted prior to 19.10.05 (imports in all these appeals are prior to this date) and that Notification No. 31 dt. 19.10.05 restricts imports of such goods only on and after 19.10.05. The apex court has upheld the decision dt. 11.5.05 of the Larger Bench of the Tribunal in Atul Commodity Pvt. Ltd. and the Hon'ble High Court of Andhra Pradesh also took the same view in Central Excise Appeal No. 52/05 and the apex court set aside the judgment dt. 7.4.06 of the Hon'ble Kerala High Court (which was challenged before the Supreme Court) holding that import of secondhand photocopiers prior to 19.10.05 also warranted a licence for import. The relevant extract from the apex court's judgment is reproduced herein below:

(3.) IN the light of the above decision, we set aside the finding of contravention of provisions of Section 111(d) of the Act.